ADA, DOT, ETH, and SOL Weekly Review – ETH Merge News Shifts the Mood

Key Insights:

• Crypto investor jitters over inflation and Fed monetary policy eased in the week, supported by dovish chatter ahead of the Fed blackout period.
• Network news updates contributed to a more bullish week, with Ethereum (ETH) and Cardano (ADA) delivering market support.
• Technical indicators turned bullish, with the EMAs for ADA, ETH, and SOL signaling a bullish outlook.

It has been another choppy week for the crypto market, with US economic indicators and corporate earnings taking center stage.

For the US, economic indicators questioned how swiftly the Fed is able to deliver policy normalization, which tested support for riskier assets.

On Thursday, jobless claims and Philly Fed Manufacturing Index numbers disappointed. More significantly, prelim private sector PMIs for July sounded the alarm bells.

In July, the services PMI slid from 52.7 to 47.0, according to prelim figures, reigniting fears of an economic recession. A PMI value below 50.0 indicates a sector contraction. Services account for more than 70% of the US economy.

The crypto news wires also tested investor resilience. Mid-week, news of Tesla Inc. (TSLA) selling off 75% of its bitcoin holdings weighed. There was also more jostling in the SEC v Ripple case, with SEC filing a motion to appeal against the court ruling on the Hinman speech-related docs.

While there was plenty for investors to consider, developers announced an Ethereum Merge date, which delivered a broad-based crypto rally. News of the Cardano Vasil hard fork scheduled for later this month was also market positive.

This week, ETH leads the way, currently up 15%, with ADA also finding strong support. However, DOT and SOL trailed the front runners due to sharper pullbacks in the second half of the week.

Cardano ADA

For the current week, Monday through Saturday, ADA was up 7.80% to $0.4825. A bullish start to the week saw ADA rally from a week low of $0.4457 to a Wednesday high of $0.5487.

Steering clear of the May 12 current-year low of $0.3919, ADA struck a new July high before easing back.

For Cardano, progress towards the Vasil hard fork provided support, which is due to occur at the end of the month. Ahead of the hard fork, the Fed monetary policy decision will influence.

On a trend analysis basis, ADA would need to move through the July high of $0.5487 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 200-day EMA would support a breakout from the 50-day and 200-day EMAs to bring $0.55 into play.

Failure to move back through the 50-day EMA would leave sub-$0.4750 and the 100-day EMA, currently at $0.4731, to test buyers.

Polkadot (DOT)

Monday through Saturday, DOT is up 5.35% to $7.29. Tracking the broader market, DOT rose from a Monday low of $6.90 to a Wednesday and July high of $8.08 before hitting reverse.

Responding to a broad-based crypto pullback, DOT fell back to sub-$7.20 before finding support.

Looking at the trends, DOT returned to $8.00 for the first time since June. A breakout from the week high of $8.08 would give the bulls a free run at the June high of $10.73.

In the event of an extended reversal, steering clear of sub-$6.00 and the June and current-year low of $5.99 remains the key.

This Wednesday’s Fed monetary policy decision will likely be the key driver.

Looking at the EMAs, based on the 4-hourly, the signal is bearish, with DOT falling through the 100-day EMA, currently at $7.23. Last week, the bullish cross of the 50-day EMA through the 100-day EMA supported a return to $8.00.

A bullish cross of the 50-day EMA through the 200-day EMA would support a run at $10.00. However, DOT will need to move through the 50-day EMA, currently at $7.35, for a breakout from 8.00.

Ethereum (ETH)

For the current week, Monday through Saturday, Ethereum was up by 15.02% to $1,539. Delivering support to the broader market, ETH rallied from a Monday low of $1,336 to a Friday and a July high of $1,646.

While the Tesla news tested buyer demand, ETH avoided a material reversal, with investors focused on the September Merge.

For Ethereum, news updates on the Merge will remain the key driver, though price volatility may pick up ahead of the Fed policy decision.

Looking at the trends, ETH would need a breakout from $1,650 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 100-day EMA through the 200-day EMA supported the return to $1,600. 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, currently at $1,460, would test support at $1,400.

Solana (SOL)

Monday through Saturday, SOL is up 4.58% to $40.39. Tracking the broader market, SOL rose from a Monday low of $38.55 to a Tuesday and July high of $47.45 before hitting reverse.

Responding to a broad-based crypto pullback, SOL fell back to sub-$40 before finding support.

Following Solana Mobile updates from the previous week, there were no key drivers to deliver support.

Looking at the trends, Solana moved through the June high of $46,10 to bring $50 into play. A breakout from the week high of $47.45 would give the bulls a free run at the May high of $95.17.

In the event of an extended reversal, avoiding sub-$25 and the June and 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 due on Wednesday.

Looking at the EMAs, based on the 4-hourly, the bullish cross of the 100-day EMA through the 200-day EMA supported a return to $47. The 50-day EMA will need to pull away from the 100-day EMA to bring $55 into play.

However, SOL must break through the 50-day EMA and avoid a fall through the 100-day EMA, currently at $40.