Resistance Levels Smashed as Entire Market Surges

•  Ethereum (ETH, Tech/Adoption Grade “A”) has increased more than 80% since the July bottom.

•  Polygon (MATIC) smashed through resistance at $1.25 and is up more than 17% today.

•  Cardano (ADA, Tech/Adoption Grade “B-”) is making big gains and is up more than 30% over just the last three days.

The last three weeks have been nothing short of wild for crypto assets across the board. Resistance levels have been left in the dust for several projects.

Better yet, this bullish momentum barely flinched at the potentially bearish news coming out of Washington. The broad market shrugged off any worry of bad regulation for now.

We’ll keep close watch as Sept. 20 rolls around. That’s when the infrastructure bill heads to the House of Representatives and politicians can once again try adding crypto regulations into the mix.

Some believe the markets held firm because the mere fact cryptos were being discussed in Washington at all could be considered bullish. Others hold that it was the crypto industry’s reaction — uniting to call politicians, raising money for lobbyists, etc. — that kept the market steady.

Either way, the fact that the market barely registered the threat of regulation is itself undeniably bullish. It means this run has some serious power behind it.

Narrowing in on the top performers, Ethereum has been in the spotlight since its London hard fork last week. That upgrade kicked off ETH transaction fee burning. Since Aug. 5, over 27,000 ETH have been burned, reducing the supply rate just as demand is booming.

Diminishing supply plus rising demand equals gains. ETH is up 80% since the low set on July 20 and has blasted through multiple resistance levels. In fact, it has only had three red candles in the last 22 days. Talk about impressive.

Here’s ETH in U.S. dollar terms via Coinbase, Global Inc. (Nasdaq: COIN):

If you’re only looking at the chart below, you might think that MATIC is yet another high volatility altcoin ... but that’s not the full story.

The Layer-2 solution had exploded back in April/May as users shuffled over from Ethereum as gas fees skyrocketed. Polygon’s transaction fees are significantly cheaper and were the catalyst that brought over a ton of volume from Ethereum’s decentralized finance (DeFi) sector. It climbed from around 35 cents all the way to a high of $2.80 on May 18.

But nothing goes up in a straight line. MATIC got caught in the July correction and fell to a low of 68 cents.

Today, MATIC is soaring, up more than 17%, and has smashed through the $1.25 resistance level. That means it has now completed its “V”-shaped recovery from the July price correction.

If MATIC keeps this momentum, it could climb much further ... and may even outpace the rest of the market.

This is an exciting crypto to watch.

Here’s MATIC in U.S. dollar terms via Coinbase:

Cardano is also ripping away this week. It’s up 12% on the day and over 30% over the last three days, bringing it up a staggering 77% from its July 20 lows.

Talk about a quick recovery!

ADA likely has its sights set on its May high of $2.50, a level that isn’t that far out of reach. It will first need to establish itself above $2 before making a run to new highs, though.

Better than all this momentum? The catalyst for another round of bullish sentiment. IOHK, the company behind Cardano, is set to release the date of the upcoming smart contract upgrade.

Smart contracts could be the feature to make ADA a real contender to Ethereum. Of course, Cardano has a long way to go to catch up. But in the meantime, this event would surely be reflected in the price of ADA if the launch is successful.

Stay tuned to this chart. Here’s ADA in U.S. dollar terms via Coinbase:


Notable News, Notes and Tweets

•  In a wild series of events, a hacker stole over $600 million in cryptocurrency yesterday and has now returned over $250 million of it.

•  Now that ETH has implemented EIP-1559, is it ultra-sound money?

•  Here is a Weiss tweet that shows the importance of this upcoming Cardano upgrade.

What’s Next

In typical cryptocurrency fashion, just when fears of a deeper correction started bubbling in late July, the notoriously volatile market bounced back with authority. We’ve now seen three straight weeks of very bullish price action, with Ethereum as one of the big winners.

Altcoins are starting to surge, too. This is likely the start of what could be a parabolic bull wave.

But, as I said earlier, nothing goes up in a straight line. Potential short-term rebalancing is possible in the coming days.

Rest assured, though, that the market has definitively entered a bullish trend in the long term. We still expect prices to rise over the next few months. Significantly so, in fact.

Stay tuned for the latest and greatest updates.

Best,

Alex

About the Crypto Analyst

Alex has been actively researching and investing in cryptocurrencies since 2017. He contributes research and reports to several Weiss crypto publications, with a primary focus on helping to create crypto trading strategies.

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