Bitcoin Support, Ethereum Breaks Out

Bitcoin Support, Ethereum Breaks Out; Solana and Cardano the Focal Points

BITCOIN (BTC/USD), ETHEREUM (ETH/USD), SOLANA (SOL/USD), CARDANO (ADA/USD) TALKING POINTS:

• Alt coins continue to be the focal point of the crypto world, with Solana showing a near 90% gain over the past week.

• Cardano had previously been bid as the coin started to move towards the NFT space; and it was an NFT offering on Solana thats brought a massive impact there.

• The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.

Alt coins continue to impress and while Cardano pushed up to a fresh high last week, it‘s been Solana that’s been stealing the show of recent. Solana is up over 90% from the low of a week ago, helped along by the rush into NFTs or Non Fungible Tokens. Solana launched the ‘degenerate ape academy’ as NFTs with more than 10k units sold initially. And given that buyers needed Solana cryptocurrency to purchase the NFTs, this led to a strong rush in demand that saw the coin push up to as high as 130.00 earlier today.

On the chart below, we can see the pullback playing-in, with prices quickly pushing down for a test of trendline support, taken from August 26th and 29th swing lows.

To learn more about drawing trendlines, check out DailyFX Education

SOLANA FOUR-HOUR PRICE CHART

CARDANO CONGESTION JUST UNDER RESISTANCE

We‘ve talked about a cryptocurrency making a push into the NFT space before by enabling smart contracts to be built on their blockchain; and this is somewhat of the explanation for the recent rally in Cardano. Cardano, the ’green cryptocurrency‘ that was created by Ethereum co-creator, Charles Hoskinson, announced the Alonzo hard fork which was intended to allow for smart contracts to be coded on to that blockchain, as well. This could mean competition in the NFT space for Solana and Ethereum, but it’s also been behind the bullish push in Cardano over the past month thats propelled the coin higher by as much as 300% during the month of August.