Charts: Bitcoin in Pullback Mode; Support near $45K
  Everything you need to make sense of the crypto markets and beyond By the CoinDesk Markets Team Edited by Lawrence Lewitinn, Managing Editor, Global Capital Markets August 25, 2021 Sponsored by  (Price data as of August 25 @ 11:00 UTC) If you were forwarded this newsletter and would like to receive it, sign up here.
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Market Moves by Omkar Godbole ADA, SOL Lead the Way as Crypto Market Sees Price Pullback The crypto market is a sea of red, with Solana's SOL, Cardano's ADA tokens and other alternative cryptocurrencies taking a bigger hit than bitcoin (BTC) and ether (ETH). The move seems typical of a breather often observed after notable rallies.
ADA was trading at $2.67 at 10:53 UTC, representing a 7.6% drop on a 24-hour basis, and SOL was nursing a 13% loss at $68, according to data source Messari. ADA debuted on Japanese cryptocurrency exchanges today. Earlier this month, Sebastien Guillemot, CTO at dcSpark and a former executive of Cardano-founding entity EMURGO, hailed ADA's entry to Japan as being similar to a listing on Coinbase, the U.S.-based, Nasdaq-listed crypto exchange and institutions' preferred avenue to accumulate bitcoin.  Cardano (ADA) over the past 24 hours (Source: CoinDesk) XRP, polkadot (DOT) and dogecoin (DOGE) were also down more than 8%. Meanwhile, bitcoin was changing hands at $47,500, down 3.7%, and ether traded 5.5% lower at $3,100, CoinDesk 20 data show. All sub-sectors, including decentralized finance and non-fungible tokens, were flashing red.  Bitcoin (BTC) over the past 24 hours (Source: CoinDesk) According to analytics platform Laevitas, alternative cryptocurrencies were looking ripe for a pullback as holding long positions in many of the coins had become too costly. "Paying over 100% annualized for longs can't be sustained forever," Laevitas tweeted, adding that the price drop looks like a healthy correction.
Some of the coins like ADA and SOL looked overbought, having recently rallied to record highs and outperformed bitcoin by a significant margin. For instance, ADA had rallied 187% and SOL 272% in the past four weeks, more than twice as much as bitcoin's 70%.
"The duo of Cardano (ADA) and Solana (SOL) has seen a meteoric rise in price and valuation lately, with both printing new all-time highs at $2.97 and $81.81 respectively," Pavel Shkitin, CEO of the cryptocurrency exchange Nominex.io said. "Despite the superiority in both tokens' technologies, the surge in the past days is somewhat unprecedented, and the current reversal is an expected reaction."  Cardano (ADA) over the past month (Source: CoinDesk) James Wo, founder, and CEO of the Digital Finance Group said it is normal for investors to reduce exposure and take profits to enter at a lower price since we've seen the market signal that a short-term top was reached.
Bitcoin, the leading cryptocurrency by market value, looked due for a pause on Wednesday, with exchanges seeing an increased inflow of coins amid renewed selling by whales.
Similar dynamics were observable in Ethereum's ether token. According to blockchain analytics firm Santiment, exchanges received 779,880 ETH on Monday, the most since June 21st. "Judging by on-chain data, it might be a whale possibly looking to take some profits," Santiment said in a research note published Tuesday.
Analysts remain confident of major cryptocurrencies' long-term prospects. Laurent Kssis, managing director of exchange-traded products at 21Shares, foresees a return of institutional demand to the bitcoin market after Friday's Jackson Hole Symposium.
Nominex.io's Shkitin expects the so-called Ethereum killers ADA and SOL to regain their upward trajectory. "With what Cardano, through its forthcoming Alonzo upgrade, is set to usher in and Solana's blooming fundamentals, these price drops are at best temporary, and a reversal is imminent in the near to mid-term," he said.
Technician's Take by Damanick Dantes, CMT  Bitcoin in Pullback Mode; Support near $45K Bitcoin (BTC) buyers continued to take profits during Asia hours as short-term overbought signals appeared on the charts. The cryptocurrency is trading around initial support at $47,500 at press time and is down about 3% over the past 24 hours. A lower support zone between $42,000-$45,000 could stabilize the pullback.  Bitcoin four-hour price chart shows short-term support and resistance levels with RSI. (Source: TradingView)
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
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