Crypto Focus: Markets Back on the Move As Cardano Breaks Its Downtrend
This week, it’s been another firm week on the crypto boards, with the top 10 adding over 5% and the top 25 gaining over 5.5%. It wasn’t all smooth sailing as sellers tried to get things going lower early in the week before buyers returned and set the direction for the remainder of the week.
Looking at the top 100, Qtum was one of the leaders this week, adding 45% and Loopring had a fantastic week, climbing over 58% in the last seven days. ApeCoin failed to catch weekly buyer momentum, dropping over 18% during the week.
One of the week’s stories to watch is reports that Russia is looking at Bitcoin as a payment form to settle energy transactions. Western sanctions continue to hit the Russian economy hard and its effectively locked out of the USD FX market. The Kremlin is looking at other payment options, including Bitcoin.
Putin has changed his tune on Bitcoin. In 2021, the Russian leader told CNBC’s Hadley Gamble that while he believed Bitcoin had value, he wasn’t convinced it could replace the U.S. Dollar in settling oil trades. Now, the Kremlin’s top brass is weighing it as a form of payment for major exports. It’s unclear, however, whether Bitcoin’s relative lack of liquidity could support international trade transactions of that magnitude. – CNBC
This week we are focusing on a favourite that has, like many, seen a rough run over the last few months. Cardano started the year with two months of sharp declines that saw the price drop back to 0.7440. Since then, we’ve seen a fightback that’s produced two higher weekly bars, the first time since November 2021. This week’s price broke out of its long term downtrend, another firm sign that demand is back on track, which is what we want to see from here. If buyers can break 1.206 resistance, that would be another win, but we would like to see a new reaction in lower form. A new higher low that sets up a break and closes above that resistance point could send a firmer signal that this new run higher might actually turn into something more.
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