SOL, ADA and ETH price spikes pushed them into a strong bull trend.
SOL, ADA and ETH witnessed massive liquidations of short positions.
In a recent crackdown led by the SEC, Solana [SOL] and Cardano [ADA] were classified as securities, although Ethereum [ETH] managed to avoid this classification. As a result, the prices of Solana and Cardano showed a downward trend. However, a summary judgment in the Ripple-SEC case has led to renewed optimism and positive market sentiment.
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Solana, Cardano and Ethereum are boosted
The crypto community is in turmoil following the July 13 court ruling. Ethereum, in particular, rose to a three-month high, surpassing the $2,000 mark. The court ruling ruled that the sale of Ripple [XRP] tokens through exchanges and algorithms did not qualify as investment contracts.
This ruling has had a “ripple effect” on other tier-1 tokens such as Solana and Cardano, which had previously been labeled as securities. Since the publication of the verdict, these tokens have increased in value significantly, by double digits.
This upward trend is rooted in the belief that the Ripple ruling can serve as a precedent for overturning the security rating of these tokens. There is hope that the ruling will provide clarification and serve as a reference point for the regulatory framework within the crypto landscape.
This anticipation has fueled positive market movements and created a sense of reassurance among investors and enthusiasts alike.
Solana sees eight months high
Solana showed strong indications of a significant upward trend when observed over a daily time frame. On July 13, it closed trading at $26.04, an impressive 18.6% price increase.
At the time of writing, its value had further increased by almost 13%, with the token trading at over $29. This price range represented the highest point in about eight months, after a significant drop in early November 2022.
Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) confirmed the presence of a strong bullish trend at this time.
However, the RSI was above 75, indicating that SOL was overbought. This suggested the possibility of a correction before the price resumes a more regular trend.
The volume of trading activity also revealed a notable spike in line with the price increase. At the time of writing, the volume had risen to more than 2.5 billion, the highest level in about six months.
This increase in volume further added to the overall bullish sentiment around Solana.
Cardano sees little excitement
Like Solana, Cardano also experienced a remarkable price increase on July 13. By the end of trading that day, the value was up more than 23.5% to $0.357.
However, at the time of writing, it had experienced a slight decline of more than 1%, although it was still trading in the price range of around $0.35.
The price spike propelled ADA into a bullish trend, pushing it slightly into the overbought zone, as indicated by the Relative Strength Index (RSI). However, the subsequent slight price drop has gradually moved it out of the overbought zone, suggesting a possible correction is underway.
In addition, Cardano’s trading volume witnessed a significant spike, reaching around $1.4 billion at the time of writing. This volume represented the highest level observed in more than six months.
Ethereum Flashes Modest Price Rise
Unlike Cardano and Solana, Ethereum showed a relatively modest upward trend in price when analyzed on a daily time frame. By the close of trading on July 13, it was up about 7.14% in price.
But despite this, Ethereum surpassed the $2,000 price range, which it had traded below for a significant period of time. However, at the time of writing, it had experienced a partial retrace in its gains but was still trading around $2,000.
Also, the Relative Strength Index (RSI) was above 63, indicating a significant bullish trend. In terms of trading volume, no notable peak was observed. The volume hovered around 13 billion at the time of writing.
Short positions are liquidated
Solana, Cardano, and Ethereum daily timeframes all showed price spikes, albeit with varying trading volumes. These price spikes resulted in significant liquidation of short positions.
How much are 1,10,100 ETHs worth today?
On July 13, Solana witnessed the liquidation of short positions amounting to $8.28 million, compared to $2.36 million in long positions, according to data from Glassnode. Similarly, Cardano saw the liquidation of $5.22 million in short positions as opposed to $1.13 million in long positions.
Ethereum had the largest liquidation volume, with $35.7 million of short positions closed, while $5.26 million of long positions were liquidated.
This post Solana, Cardano and Ethereum rallied amid positive developments
was published first on https://ambcrypto.com/solana-cardano-and-ethereum-rally-amid-positive-developments/