Altcoins are having fierce battle with first resistances after prolonged downtrends
The recovery on the cryptocurrency market brings numerous altcoins back to pivotal resistance levels that, if broken, will launch a reversal rally that will finally be the end of the eight-month downtrend the industry is going through right now.
Cardano’s battle with low profitability
It is not a secret that Cardano is one of the least profitable assets from the top 20 on the cryptocurrency market as it has been moving in a sharp downtrend for the last 300 days. But despite the extremely low profitability, especially for a cryptocurrency, the development activity around the project is one of the highest in the whole industry.
According to the daily chart, ADA has reached the local uptrend resistance and is currently trying to break it to exit the local downtrend. The successful move of Cardano will make it eligible for a reversal rally.
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Unfortunately, ADA’s trading volume remains at an extremely low level, which is why positive sentiment on the market in general might not be reflected in the coin’s movement, at least while the volume is at such a low level.
XRP has breakout potential
While Cardano’s daily chart looks like the asset has no chances for a breakout in the foreseeable future, XRP shows a common pattern called a descending triangle that usually appears before volatility moves. Unfortunately, the direction of the breakthrough is a subject for speculation.
Considering Ripple’s success in court, XRP is getting more attention from investors despite not being directly affiliated to the company, which might help it to show better performance on the market, considering the lack of fundamental updates and improvements around the coin.
Ether shows more momentum than usual
Ethereum users and investors have finally gotten an exact day on which the Merge update will finally go live. September 19 is the new potential date for the implementation of the new consensus mechanism on the network and the end of the PoW era for the second biggest cryptocurrency in the industry.
While Ethereum fundamentalists were celebrating the upcoming update, the coin showed a solid performance on the market after rising by 20% in the last three days and inching closer to the consolidation channel resistance.
For around 30 days, Ethereum has been moving in the $1,000-$1,200 price range with relatively low volatility and sometimes scary price performance, especially after reaching values below $1,000.
In the upcoming week, we will finally see the results of every resistance test and determine if the cryptocurrency market is ready for a reversal or not.