ADA, DOT, ETH, and SOL Weekly Review – ETH Returns to $2,000

Key Insights:

• It is another bullish week for the crypto market, with the total market cap up by $81 billion to $1,156 billion.
• US inflation and consumer sentiment figures delivered a broad-based crypto rally, with crypto network updates providing additional support.
• Technical indicators have become more bullish, signaling more gains to come.

It has been a bullish week, with US inflation and consumer sentiment figures driving demand for riskier assets. Following the impressive nonfarm payrolls from the week prior, consumer and wholesale inflation numbers eased fears of another aggressive Fed move in September.

In July, the US inflation softened from 9.1% to 8.5%. Economists forecast a softening to 8.7%. Wholesale inflationary pressures also eased, with wholesale inflation softening from 11.3% to 9.8%.

On Friday, consumer sentiment and inflation expectations were also market positive, sending riskier assets northwards ahead of the weekend. According to prelim figures, the Michigan Consumer Sentiment Index jumped from 51.5 to 55.1 in August. Looking at the sub-components, the Michigan Inflation Expectations Indicator slipped from 5.2% to 5.0%.

In the current week, the total crypto market cap is up $81 billion to $1,156 billion, as investors responded to the latest shift in sentiment towards the US economy and Fed monetary policy.

The market-friendly inflation numbers and Friday’s consumer survey-based numbers supported another NASDAQ 100 breakout week. The NASDAQ 100 ended the week up 3.8%. As seen throughout 2022, the correlation between the NASDAQ 100 and the crypto market remained in place.

However, based on the below chart, the crypto market could play catchup in the coming weeks.

For the current week, Monday through Saturday morning, Ethereum (ETH) leads the way, rallying 17.9% to $2,005, with Solana (SOL) and Polkadot (DOT) up by 17.0% and 10.6%, respectively. Cardano (ADA) trailed the front runners, rising by a more modest 6.52%, with the Vasil hard fork delay a likely drag.

Cardano ADA

For the current week, Monday through Saturday morning, ADA was up 6.52% to $0.5620. A mixed start to the week saw ADA fall to a Wednesday low of $0.5023 before rising to a Saturday high of $0.5636.

Steering clear of sub-$0.50 and the August low of $0.4890, ADA broke through the July high of $0.5556 to give the bulls a run at the June high of $0.6688.

For Cardano, the Vasil hard fork delay limited the upside going into the weekend.

On a trend analysis basis, ADA would need to move through the current week’s high of $0.5636 to target the June high of $0.6688. However, a fall to sub-$0.50 would bring the August low of $0.4890 into play.

An extended sell-off could see ADA slide back to test support at $0.40 before any recovery, with hard fork updates the main driver.

Looking at the EMAs, based on the 4-hourly, it was a bullish signal. On Saturday, ADA stood above the 50-day EMA, currently at $0.5277. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, ADA price positives.

A further widening of the 50-day EMA from the 100-day and 200-day EMAs would support a run at the June high.

However, ADA would need to hold above the 50-day EMA to avoid a fall through the 100-day EMA, currently at $0.5172, which could bring the 200-day EMA ($0.5065) and sub-$0.50 into view.

Polkadot (DOT)

Monday through Saturday morning, DOT is up 10.6% to $9.57. Tracking the broader market, DOT fell to a Wednesday low of $8.55 before rising to a Saturday high of $9.68. US economic indicators were behind the DOT moves intraweek. For the bulls, breaking through the July high of $9.20 was a bullish signal.

Looking at the trends, a DOT move through the August high of $9.68 would support a run at $10.00 and the June high of $10.73. From $10.73, DOT would have a clear run at the May high of $16.44.

However, DOT would need to steer clear of sub-$8.00 to avoid a reversal to the current year low of $5.99. While network updates will continue to influence, sentiment towards Fed monetary policy will need to remain crypto-friendly to support the upward move towards $10.00.

Looking at the EMAs, based on the 4-hourly, the signal was bullish. DOT sat above the 50-day EMA, currently at $8.9915. On Saturday, the 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, both DOT price positives.

A hold above the 50-day EMA would support the current run at $10.00. However, DOT needs to avoid the 50-day EMA and sub-$8.00 to deliver a breakout from the August high ($9.68).

Ethereum (ETH)

For the current week, Monday through to early Saturday, ETH was up by 17.9% to $2,005. Updates on the Ethereum Merge and US economic indicators delivered an ETH breakout. ETH returned to $2,000 for the first time since May 31.

Progress towards the September Merge delivered ETH and Ethereum linked coins, including Ethereum Classic (ETC), with strong support.

Looking at the trends, ETH would need a move through to $2,500 to now target the May high of $2,968 and $3,000.

However, downside risks remain should developers announce any delay to the September Merge. A fall to sub-$1,500 would bring the July low of $1,010 into view.

Looking at the EMAs, based on the 4-hourly, it was a bullish signal. ETH sat above the 50-day EMA, currently at $1,805. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA breaking out from the 200-day EMA, both ETH price positives.

A further widening of the 50-day EMA from the 100-day EMA would deliver another breakout week. However, a fall through the 50-day EMA could see ETH test support at $1,750 and the 100-day EMA, currently at $1,715.

Solana (SOL)

Monday through Saturday morning, SOL was up 17.0% to $47.52. A bearish first half of the week saw SOL fall to a Wednesday low of $39.17 before striking a Saturday high of $48.40.

The breakout week saw SOL move through the July high of $47.45 to support the ongoing recovery from the June 14 current year low of $25.84. Solana managed to dust off the previous week’s news of a Solana wallet heist.

Looking at the trends, a return to $50 would give the bulls a run at the May high of $95.17. SOL would need plenty of support to break out from $75.

However, avoiding sub-$40 and the August low of $37.48 remains the key to an extended bull run.

Looking at the EMAs, based on the 4-hourly, it was a bullish signal. SOL sat at the 50-day EMA, currently at $42.41.

The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, both SOL price positives.

A further widening of the 50-day EMA from the 100-day EMA would bring $50 into play.

However, SOL must avoid the 50-day EMA. A fall through the 50-day EMA would bring the 100-day EMA, currently at $41.57, and the 200-day EMA, currently at $40.59, into play. A fall through the 200-day EMA could lead to a bullish trend reversal.