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Highlights
- The Ethereum price witnessed a high demand pressure at the $3,700 level.
- The Cardano price breakout from the triangle pattern will signal a major reversal.
- An ascending trendline bolsters the PEPE price with dynamic support to prolong the recovery trend.
Over the past two weeks, the crypto market has been wavering in uncertainty showcasing no clear commitment to a particular direction. The leading digital assets Bitcoin and Ethereum price represent this indecisive nature with several short-bodied candles in the daily chart.
However, in the recent analysis shared by Ki Young Ju, CEO of CryptoQuant, the Bitcoin Thermo Cap Ratio was highlighted as an insightful metric for understanding Bitcoin’s valuation relative to its network fundamentals.
#Bitcoin is not currently overvalued based on network fundamentals. pic.twitter.com/fFLQF34VQv
— Ki Young Ju (@ki_young_ju) June 3, 2024
The Thermo Cap Ratio rarely highlighted in mainstream analysis, measures miners’ cumulative security spend (or thermo cap) against the market cap. According to Ki Young Ju, Bitcoin is “not currently overvalued based on network fundamentals despite recent price increases.”
Therefore, the market appears to be regaining its bullish momentum through ongoing consolidation and could continue the existing rally shortly.
Also Read: Top Reasons ETH Price Could Reach a New All-Time High Soon
1) Ethereum Price Treading Dangerously
Ethereum stands out as a decentralized platform that not only supports cryptocurrencies like Ether but also enables the creation and execution of smart contracts and decentralized applications (dApps).
Ethereum price traded at $3762 on Tuesday, with the market cap holding at $452.1 billion. Amid the current market uncertainty, the leading altcoin has stabilized above $3700 support.
The daily chart projecting several lower-price rejection candles at this $3700 indicates the buyers are actively defending the support. A potential rebound from this support will push the ETH price by 8.5% to challenge the $4,090 peak and resistance. Note that a breakout from this barrier is crucial for buyers to resume the prevailing uptrend.
However, if the current consolidation is prolonged it would indicate weakness in buyers’ conviction, suggesting a potential breakdown from $3500 support.
Also Read: Ethereum Price Analysis: Can Bulls Push Price to $5,000 on the RWA Narrative?
2) Cardano (ADA)
Cardano (ADA) is a third-generation blockchain platform known for its research-driven approach and commitment to security and sustainability. It distinguishes itself through a layered architecture that separates the settlement and computational layers, enabling more flexible updates and maintenance.
The Cardano price has been trading sideways for nearly two months, resonating within two converging trendlines of the symmetrical triangle pattern. The altcoin rebounded twice from the upper boundary and thrice from the lower indicating the trades are following the lead of this pattern formation.
Currently, the ADA price trades at $0.455, seeking support at the lower trendline. The Cardano coin currently holds a market cap of $16.27 Billion and maintains its position as the 10th largest cryptocurrency.
Under favorable market conditions, the coin buyers are likely to breach the overhead trendline signaling the end of the consolidation trendline. The post-breakout rally could lead the ADA price to $0.62, followed by $0.68.
Also Read: Cardano (ADA) Breaks May Bearish Streak, But Major Twist Lies Ahead
3) PEPE Coin (PEPE)
PEPE Coin is a meme-themed cryptocurrency inspired by the popular internet meme, Pepe the Frog. This project stands out for its community-driven approach and its focus on the playful, irreverent culture that characterizes many meme-based digital assets.
An ascending trendline in the daily chart carries the current recovery trendline in PEPE price. The coin buyers witnessing suitable pullback support have managed to uplift the asset from the April low of $0.00000393 to the $0.00001725 high registering a 339% gain.
However, the PEPE price reverted 17% to $0.00001434 with the market correction, while the market cap plunged to $6.035 Billion.
The coin price heading close to the aforementioned trendline could again bolster buyers with demand pressure. A potential rebound from the support will challenge $0.00001725 and aim for a higher target at $0.00002, followed by $0.000024.
Also Read: Pepe Coin Price Prediction As Bullish Sentiment Bursts, Rally To $0.00002 Incoming?
Takeaway
The current market consolidation evidenced by Bitcoin price prediction and the Ethereum price sideways action has stalled the recovery momentum for most major altcoins. However, with on-chain indicators like the Thermo Cap Ratio, the broader trend remains bullish and currently stabilizes for future moves. Thus, the ongoing consolidation could bolster buyers to replenish recovery momentum and provide new entry opportunities for investors.
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