Cardano’s value trajectory seems to be following just one trendline. This line, which was created at the end of August, has evolved into the wall that ADA just can’t seem to break through. It acts as a type of cursed barrier, protecting the cryptocurrency from any bullish antics. Cardano is currently trading at $0.251, and the questioned trendline is acting as a formidable obstacle.
However, Cardano isn’t being held in check just by the trendline. Another offender is the quantity on the market, or more accurately, the lack thereof. It seems as though business owners are holding their breath in anticipation of a sign that never materialises.
The lacklustre demand for Cardano-based decentralised applications (dApps) adds fuel to the pessimistic fire. The lack of dApp activity is a clear indication that the Cardano ecosystem isn’t as active as one might anticipate; it’s like holding a party and no one shows up.
What can we learn from this right now, then? Cardano is essentially in a sharp slump, and there are no signs of a turn around. The gatekeeper, the trendline, is not allowing ADA pass. The lack of dApps and the low market volume make it a trifecta of bearish indications.
Shiba Inu’s relentless advancement
Despite the low volatility and liquidity that have been the talk of the crypto metropolis, the meme coin is enjoying its fourth day of gains in a row. The current increase in SHIB’s value, which is sitting at $0.00000738, is not just a coincidence. It’s probably a reaction to the oversold conditions that exist in the larger market.
Let’s now get down to business. Numerous properties have been devalued as a result of the oversold state of the market. This often starts a rebound, and it appears that SHIB is propelling that wave. Low volatility, which typically signals a market in decline, has not dampened SHIB’s celebrations.
The amount of trading and investor interest are gradually but surely increasing. What will happen next for SHIB? If this rise continues to gain steam, its value may significantly accelerate. It’s like a snowball sliding down a hill; all it needs is a little nudge to start turning into an avalanche.
Layer 2s are losing ground
Two Layer-2 alternatives, Optimism and Arbitrum, created to ease Ethereum’s congestion, are coping with a market slump. Why? Ethereum itself is suffering a drop in demand as a result. The community is so underutilised that transaction costs have fallen, significantly lessening the need for Layer-2 choices.
According to the most recent data, Ethereum is currently valued at $1,628.04 USD and Arbitrum (ARB) is trading around $0.805 USD. These figures reveal a market that is not just inactive but also moving away from Layer-1 and Layer-2 possibilities. Token burning and other deflationary features of Ethereum haven’t even been enough to pull it out of the inflationary cycle.
The irony is obvious. In order to solve Ethereum’s problems with excessive petrol payments, Layer-2 alternatives like Arbitrum have been developed. The lack of community activity has now resulted in nonexistent prices for connecting with the Ethereum blockchain, nevertheless. The need for Layer-2 choices has thus decreased, creating a vicious cycle of low demand and low prices.
What is the exit strategy then? The cryptocurrency market is cyclical, therefore demand will undoubtedly increase again. When that happens, the utility of Layer-2 options will once again become apparent, potentially increasing their market value. But for now, it’s merely a ready-made amusement, and these Layer-2 tokens are bearing the brunt of the market’s disregard.