New Year's fuel market the recovery seems to evaporate as most assets are beginning to lose much of their value despite some signs of recovery a few days ago. The most recent failure occurred on Cardanowhich looks like it is trying to enter a new uptrend.
Rally's fade followed by volume
According to the daily chart of Cardano, the Ethereum competitor has been slowly losing much of the momentum it gained at the beginning of the year. Unfortunately, the trading volume, which has dropped by over $70 million in the last 24 hours, suggests that the major traders are not yet ready to support the asset's upward move.
Despite the most recent NFT controversy in the Cardano community, the reason behind the slowdown in the rally is more vague. Cardano has been primarily following general sentiment in the cryptocurrency market, and the most recent drawdown is only part of the general correction in the cryptocurrency market.
At press time, we are seeing a continued fading of the Cardano rally, which makes us think about the next resistance levels that investors can use as average points of the positions. If today's trend prevails, ADA will most likely drop below the local support level of $0.24 and hit a new local low.
The pattern for the current downtrend is reflected in the 21-day exponential moving average. It often acts as a tool to determine reversal points and local breakouts.
The surprising rise of Ethereum PoW
The last thing most cryptocurrency market participants were expecting was the sudden rise of a PoW version of Ethereum that has been very quiet after the Merge update was implemented on the mainnet.
However, in the last seven days, ETHPoW has been showing strong performance in the market, gaining more than 5.7% in value in the last 24 hours and more than 10% in the last week. The existing market trend could be the result of an underperforming Ethereum network that recently hit a nasty threshold: the issuance surplus since the Merger hit 5,000 ETH.
The lack of network activity has been directly linked to the decrease in intensity of burning operations. Despite the slow recovery in network utilization, the Ethereum we know today is far from the 2021 version of the same network that has nearly become unusable due to steep transaction and operating fees.
Ethereum PoW, on the other hand, is considered a strong alternative to network PoS and even stands out as a more resilient version of Ethereum thanks to the conservative mechanism at its core. At press time, Ether's big brother capitalization is $335 million, while the coin itself is trading at $3.3 in the market today, compared to Ethereum's $1,253.
/cloudfront-us-east-1.images.arcpublishing.com/gray/OPQMY3YANVEKFDKAO3WIA7EMLA.jpg?w=75&resize=75,75&ssl=1 "Thousands of Alabamians lose money in FTX bankruptcy")
