Bitcoin (BTC) continues its fluctuating movements, unable to surpass the $65,000 resistance for the second time. Despite a generally positive outlook in the crypto markets, the third-quarter performance has historically been the weakest period of the year. BTC remains calm despite several promising developments.
Why is ADA Coin Struggling?
ADA Coin faced resistance at $0.4, which it briefly breached but quickly lost. The movement of the MVRV ratio into the sales zone also influenced this performance. Although investors have an optimistic outlook for the fourth quarter, the overall weakness in the crypto market might persist until mid-September.
Will PCE Data Impact Crypto?
Friday’s upcoming PCE data could potentially trigger an unexpected drop, although this is not anticipated. The 30-day MVRV ratio for ADA Coin reached 11.4%, where a range of 8% to 18% is typically a sell signal for investors. Currently, the ratio has decreased to 5.4%.
Key Inferences for Investors
Despite the positive funding rate in futures, indicating that investors are not overly pessimistic, BTC is currently at $63,400, with most altcoins in the red. Here are some critical points for investors:
- A failure to surpass $65,000 suggests a potential pullback to $60,000 for BTC.
- ADA Coin’s inability to keep up with competitors could indicate a long-term issue.
- If ADA Coin falls below $0.37, it may target $0.34 as the next support level.
- A third attempt by BTC at $65,000 and ADA Coin surpassing $0.4 could target $0.44.
Since the end of February, ADA Coin has been on a consistent downward trend. In contrast, its competitors have made significant upward attempts. This is attributed to Charles Hoskinson’s inability to advance the network as expected. Despite substantial upgrades like Vasil, the network lacks widely used protocols, causing reasonable weakness amid growing competition.
ADA Coin’s struggle to keep pace with a competitive environment poses a significant long-term challenge. The price has dipped below $0.37, targeting $0.34 if it goes below this support. Coupled with BTC’s current weakness, this suggests a bleak short-term outlook for ADA Coin’s bulls.
However, if BTC makes a third attempt at $65,000 and ADA Coin price surpasses $0.4, it could aim for $0.44.