Smart contract operators Ethereum and Solana saw a volatile week of trade as news of a $322 Million Wormhole attack made rounds in the media. Meanwhile, Cardano’s movement remained bleak but a proposed change to its network block size made headlines.
Calling Solana’s week topsy-turvy was an understatement. The third-largest smart contract operator in the world made news after ORCA and FIDA became the first SPL (Solana Program Library) tokens to be listed on Coinbase. The development was followed by an ascending triangle breakout which allowed SOL to test $112 for the first time since January’s flash crash. However, its weekly ROI dipped to 18% during the weekend.
A $322 Million wormhole attack on the Solana network halted SOL’s progress on the chart. A 16% sell-off soon followed as its price shifted back within an ascending triangle setup. Over the next week, investors should be on the lookout for a close above the 38.2% Fibonacci level. The resulting breakout can generate some brief profits at $112 or $120. Any further upside would be limited to a supply zone between $138.5-$130. Meanwhile, a shift below the 23.6% Fibonacci would call for a retest of $82-support.
A lackluster start on Monday failed to evolve into a major price swing as Cardano held within a symmetrical triangle setup. Its weekly ROI stood at a measured 3.6% only thanks to mini jumps in a risk-on broader market. Overall, the outlook remained the same as last week. A jump to $1.40 was still on the cards next week provided Bitcoin holds steady above $37K. Incidentally, IntoTheBlock showed that 80% of ADA holders were making a loss at its current price. Since most holders would be unwilling to sell at a loss, ADA could hold tight above $0.92 before new longs are initiated.
Meanwhile, Cardano made headlines after Input-Output proposed increasing the network’s block size by 11%. The proposals were touted to improve the performance of applications built on top of Cardano and also increase the overall network capacity.
Ethereum’s rising wedge was unable to continue above $2,850 and the same resulted in an unfortunate breakdown. If a weekend correction hadn’t tainted Ethereum’s performance, its weekly returns of 18% would be higher than that of Solana’s. The outlook for next week is mostly bearish, with ETH lining up a comeback to $2,160.
No extraordinary developments were seen during the week, save for a few whale transfers to non-exchange addresses.
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