ADA Strikes a New 2023 High Amidst a Broader Market Pullback
Cardano’s ADA Extends Winning Streak to Six
On Saturday, ADA rallied 6.04%, ending the session at $0.579. Significantly, ADA struck a session high of $0.648. ADA last visited the $0.64 handle in June 2022.
Bullish whale activity reportedly contributed to a breakout week for ADA. Impressively, Cardano’s growth in the DeFi space has also raised eyebrows. According to DeFiLlama, Cardano’s Total Value Locked (TVL) hit an all-time high of $420.82 million on Saturday.
As of December 10, 2023, the mCap/TVL ratio was 52. This suggests that ADA is currently overvalued. However, a continued upward trend in TVL could support the bullish momentum.
According to CoinMarketCap, the number of wallet addresses holding 0-1k ADA has been on a downward trend. Whale activity and the downward trend in 0-1k ADA wallet addresses suggest sustainable gains.
For the current week, ADA was up 48.62% to $0.591.
Bitcoin (BTC) Gives Up $44,000 Handle on Broad-Based Crypto Pullback
Friday, bitcoin (BTC) declined by 1.02% on Saturday. After a 2.11% gain on Friday, BTC ended the Saturday session at $43,787.
There was no BTC-spot ETF-related news to fuel buyer demand on Saturday. The lack of news likely left investors to digest the latest US Jobs Report. November’s numbers reduced bets on a March Fed rate hike. However, gains across the US equity markets likely limited the downside for BTC and the broader market.
US economic indicators and the Fed will draw interest this week. However, progress toward the January 5-10 approval window could counter a hawkish Fed rate stance. The anticipated inflow of institutional money into the BTC-ETF space may dilute the influence of the Fed on BTC price movements. Bitcoin’s halving and an increase in demand could be two tailwinds.
Despite the Saturday loss, BTC was up 9.85% to $43,926 for the week ending December 10, 2023.
Technical Analysis
Bitcoin Analysis
BTC held above the 50-day and 200-day EMAs, with the EMAs sending bullish price signals.
A BTC move through the Friday high of $44,747 would bring the $46,400 resistance level into play.
The crypto news wires and BTC-spot ETF-related updates will influence buyer demand.
However, a fall through the $42,900 support level would give the bears a run at the $41,585 support level.
The 14-Daily RSI reading, 74.58, shows BTC in overbought territory. Selling pressure could intensify at the Friday high of $44,747.
Ethereum Analysis
ETH remained above the 50-day and 200-day EMAs, with the EMAs sending bullish price signals.
An ETH breakout from the Friday high of $2,388 would bring the $2,457 resistance level into play.
However, a fall through the $2,300 support level would give the bears a run at the $2,143 support level.
The 14-period Daily RSI at 70.80 shows ETH in overbought territory. Selling pressure could intensify at the Friday high of $2,388.
