SOL and ADA Rally Gets Tested as They Near 200-Day EMA: Can They Reach New Highs?

Solana has outperformed its peers primarily as its meme coin ecosystem has seen its market value rise rapidly in the past 30 days.

A handful of tokens including Fartcoin (FARTCOIN), Pudgy Penguins (PENGU), and Popcat (POPCAT), have seen their market caps more than double during this period, while President Trump’s official meme coin has also delivered strong gains.

Meanwhile, Cardano remains one of the most valuable crypto projects by market cap and one of the best-performing assets in the top 10 despite its lack of ecosystem growth.

The two tokens rallied above their 21-day exponential moving averages (EMA) in late February as market participants were buoyed by Trump’s willingness to reduce China’s tariffs based on how the administration’s ongoing negotiations with the Asian country keep progressing.

Today, the markets will be keeping an eye on the Federal Reserve’s interest rate decision. Although the majority of market participants expect no changes to the federal funds rate this month, Chairman Jerome Powell’s comments will be scrutinized to identify possible changes to the central bank’s stance.

During the first quarter of the year, the U.S. economy shrank by 0.3% compared to the previous quarter. If the Fed interprets this as an early signal of an upcoming economic slowdown, they could opt to cut rates much sooner than expected, which would benefit crypto prices in the near term.

ADA is Still in Bear Market Rally Territory

Cardano’s daily chart shows that the price has silently dropped below the 21-day EMA in the past few days. This bearish breakout was not accompanied by strong volumes, meaning that this level may not be too relevant for market participants at the moment.

Despite this break, ADA is still on an uptrend with a valid low standing of around $0.6000. As long as this level holds, the token’s outlook in the near term is bullish.

That said, overcoming the 200-day EMA is critical for the rally to continue at this point. Hence, this latest consolidation seems justified as the market approaches such a critical threshold.

Momentum indicators show that buyers may have exhausted their ammo for now after a strong push from the low $0.500s to ADA’s current levels. At this point, the market seems to be needing additional liquidity to break the $0.700 barrier.

This is the point of control for ADA, meaning that a significant portion of this year’s trading volumes have occurred at this level. Hence, unless the price breaks above it, this can still be categorized as a bear market rally.

Solana Looks Poised to Rally to $200

Solana’s chart looks a bit better as the price has managed to stay above the 21-day EMA since its bullish breakout.

Also, SOL has stood above its point of control (POC) at $140 since the April 22 breakout and this makes this level the most relevant to watch as the rally takes a breather and consolidates.

The market’s structure is bullish, trading volumes seem to be favoring buyers, and the 21-day EMA has been holding quite well. This is a positive trifecta that anticipates an upcoming push to higher highs.

Same as ADA, SOL needs to clear the 200-day EMA to keep surging. If this break is accompanied by a golden cross between this and the 21-day EMA, we could see the token skyrocketing to $212 in the near term as we highlighted in a previous analysis.