Cryptocurrencies continue to display uncertainty as the sentiment has switched off again after being on during most of March. The volatility has been declining and the daily moves became smaller as cryptocurrencies moved higher, which suggested that the uncertainty was declining, but this week we have seen a quick reversal lower. As a result, Kadena (KDA) and Ethereum (ETH) have reversed lower after failing at moving averages earlier this week.
Kadena Daily Chart – MAs Keeping KDA Down
The 100 SMA has turned into resistance for Kadena crypto now
Kadena is an interesting layer-1 blockchain since, unlike Ethereum, it can execute up to 480,000 transactions/second (TPS) and doesn’t suffer from congestion which keeps fees lower. It uses the Power of Work (PoW) but with the braided multi-chain architecture which helps to scale. Kadena claims to be the only blockchain network capable of scaling more than 9 million trades a day.
Despite that, KDA/USDD has been bearish since November after a massive surge in October last year, although we have seen several attempts to turn bullish. The biggest driver of KDA was in March after the listing on Binance. Another development helping to boost the price of KDA was the launch of new protocols such as Kaddex, the first decentralized exchange (DEX) on Kadena offering gas-free trading, which will also integrate with Simplex to bring a fiat onramp into the growing DeFi ecosystem. Although, KDA is heading down again now after failing to break above the 100 SMA (green) on the daily chart. We are following this cryptocurrency to see if we can buy it at $5.
Ethereum Daily Chart – The 200 SMA Rejects ETH
Ethereum heading for $3,000 again
Ethereum fell below $2,200 in January and since then it has been making higher lows, which indicated that buyers were gaining confidence. Then came the bullish breakout by the middle of March which sent ETH/USD above the 50 SMA (yellow) and the $3,000 level. But, the 200 SMA 9purple) has turned into resistance, sending Ethereum down, although let’s see if the retreat will decline there and the bullish trend will resume or if Ethereum will continue lower and resume the bearish trend.
The world’s most-used blockchain is transitioning to a proof-of-stake (PoS) consensus mechanism. The final testnet Kiln has been launched for its development community to use before launching the long-awaited upgrade that’ll change its infrastructure and make it more energy-efficient. Although, there hasn’t been much optimism in the price action but let’s see when the price approaches the $3,000 level.
Read More: Ethereum ETH, Kadena Crypto KDA Reverse After Failing to Break Above MAs