The situation in the crypto market has been deteriorating since November, for a number of reasons. The global crackdown on cryptocurrencies continues, while central banks have also started to tighten monetary policy, which is drying up liquidity, some of which has flowed into cryptocurrencies and now the conflict in Ukraine is weighing on the sentiment of risky assets such as digital coins. As a result, the moving averages pushed Kadena and Fantom lower, but support holds for both, forming a triangle on the daily charts of both coins.
Kadena Daily Chart – 50 SMA Rejects KDA Again
The support zone at $5 is also holding
Kadena coin rose from around $2 to $28.50 in late October and early November, but it was unable to sustain the gains and it has been declining since then. The moving averages were broken one after the other and they turned into resistance on higher retracements, notably the 50 daily SMA (yellow). This moving average has again rejected price this week and now KDA/USD is turning bearish.
Kadena, which is a highly scalable layer-1 blockchain running on Power of Work (PoW) due to braided chains, processing over 480K TPS, has partnered with CoinMetro to bring WKDA (Wrapped Kadena), with which holders of KDA can produce firm on Ethereum. So, KDA has a bright future, but the sentiment remains bearish at the moment, although if the support around $5 holds, we will try to open a KDA buy signal.
Fantom Daily Chart – FTM drops below support
MAs reject FTM as they move from support to resistance
Fantom was showing strong upside pressure rising from $0.20 to $3.5 through the end of October and buyers attempted the high again in January, following that month’s record high for overall trading volume NFT which reached 5 billion dollars. In February, deteriorating sentiment in the crypto market due to Ukrainian tensions also dragged FTM down, but the support zone above $1.80 held for some time, also helped by the 200 SMA (purple).
However, the 200 SMA was broken last month and now it has turned into resistance. Now the price is reversing after this week’s rejection, but this is a good opportunity to go long on FTM/USD, although I’d like to buy this coin at around $1 support. Fantom’s DeFi sector is doing well with a TVL to market cap ratio of 2/1 and big investors like GrayScale are coming to the network, so the uptrend will resume soon, but not at the moment, so we’re following developments price.