Cardano (ADA), Ethereum (ETH), and Solana (SOL) Weekly Overview

Key Insights:

• Investor angst over US inflation and the economic outlook shifted in the second half of the week, delivering an extended crypto rally.
• Ethereum (ETH) was a front runner, with talk of a September Merge delivering a breakout session.
• Technical indicators are turning bullish, with the EMAs for ETH and SOL signaling a possible breakout.

It has been a choppy week for the crypto market, with US economic indicators and FOMC member chatter delivering market volatility.

According to figures out on Wednesday, the US annual rate of inflation accelerated from 8.6% to 9.1%. Economists had forecast a rate of 8.8%.

The pickup in inflationary pressure resulted in the global financial markets pricing in a 100-basis point rate hike at the end of the month.

FOMC member chatter also spooked the markets mid-week, with Atlanta Fed President Raphael Bostic talking up a 100-basis point rate hike following the headline inflation number.

The inflation figures and hawkish chatter led the broader crypto market to a Wednesday low before investors jumped back in.

Better than expect retail sales figures for the US failed to dampen the mood on Friday, with Atlanta Fed President Bostic changing his tune on monetary policy.

The less hawkish chatter from Bostic and FOMC member Bullard delivered a Friday boost and a shift in sentiment going into the weekend.

Ahead of the Fed blackout, running from July 16 to July 28, both Bostic and Bullard talked of a 75-basis point hike.

The shift in sentiment was evident across the broader crypto market, with investors also brushing aside a spike in US wholesale inflation.

Cardano (ADA), Ethereum (ETH), and Solana (SOL) look set to enjoy five-day winning streaks as a result.

Cardano ADA

For the current week, Monday through Sunday, ADA was up 0.17% to $0.4628. A bearish start to the week saw ADA slide to a Wednesday low of $0.4026 before making a move.

Steering clear of the May 12 current-year low of $0.3919, ADA returned $0.46 levels.

For Cardano, the delayed Vasil hard fork failed to provide support, with investors now waiting for an end-of-month hard fork, which follows the Fed monetary policy decision.

On a trend analysis basis, ADA would need to move through the July high of $0.4923 to target the June high of $0.6688.

Looking at the EMAs, based on the 4-hourly, a bullish cross of the 50-day EMA through the 100-day EMA would support a run at the 200-day EMA, currently at $0.4770, to shift sentiment.

Ethereum (ETH)

For the current week, Monday through Sunday, Ethereum was up by 17.14% to $1,367. Tracking the broader market, ETH slid to a Wednesday low of $1,010 before striking a Saturday high of $1,400.

Updates on the Ethereum Merge delivered a bullish Saturday session, with ETH visiting $1,400 for the first time since June 13.

For Ethereum, news updates on the Merge will remain the key driver, though price volatility is unlikely to ease in the coming weeks.

Looking at the trends, ETH would need a breakout from $1,500 to target the June high of $1,972 and $2,000.

However, downside risks remain should developers announce a delay to the September Merge.

Looking at the EMAs, based on the 4-hourly, the bullish cross of the 50-day EMA through the 100-day EMA supports a run at $1,500. A narrowing of the 50-day EMA to the 200-day EMA would bring a bullish cross into play to give the bulls a look at $2,000.

Solana (SOL)

Monday through Sunday, SOL is up by 11.81% to $40.99. SOL fell to a Wednesday low of $31.85 before striking a Sunday and a new current-month high of $41.07.

SOL tracked the broader crypto market through the week, with news of Solana Mobile inviting pre-orders for the SAGA phone adding to the upside.

Looking at the trend, Solana moved through $40 to bring $45 into play. The breakout gives the bulls a look at the June high of $46.10 and $50.

In the event of another extended reversal, avoiding sub-$25 and the June and the current-year low of $24.84 remains the key.

Project news updates from the Solana ecosystem and the NFT space will need to impress to support a breakout from current levels.

Downside risks remain, with the broader crypto market at the mercy of Fed monetary policy and sentiment towards the US economic outlook.

Looking at the EMAs, based on the 4-hourly, the bullish cross of the 50-day EMA through the 100-day EMA supports a run at $45. A further narrowing of the 50-day EMA to the 200-day EMA would bring a bullish cross into play, which would give the bulls a run at the June high and $50.