- The price spikes of SOL, ADA, and ETH pushed them into a strong uptrend.
- SOL, ADA, and ETH witnessed massive short position liquidations.
In a recent crackdown by the SEC, Solana [SOL] and Gimbal [ADA] have been classified as securities, although Ethereum [ETH] managed to avoid this classification. As a result, Solana and Cardano prices have been on a downward trend. However, a summary judgment in the Ripple-SEC case has sparked renewed optimism and positive market sentiment.
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Solana, Cardano and Ethereum get a boost
The crypto community has been in turmoil following the July 13 court ruling. Ethereum in particular hit a three-month high, surpassing the $2,000 mark. The court ruling determined that the sale of Ripple [XRP] tokens through exchanges and algorithms were not considered investment contracts.
This decision had a “ripple effect” on other layer 1 tokens like Solana and Cardano, which were previously labeled as securities. Since the release of the judgment, these tokens have seen substantial gains in value, with double-digit increases.
Source: Santiment
This upward trend is rooted in the belief that the Ripple judgment can serve as a precedent to reverse the security classification of these tokens. It is hoped that the decision will clarify and serve as a reference point for the regulatory framework in the crypto landscape.
This anticipation fueled positive market moves and generated a sense of reassurance among investors and enthusiasts.
Solana reaches an eight-month high
Solana showed strong indications of a significant uptrend when viewed in a daily time frame. On July 13, it traded at $26.04, marking an impressive 18.6% increase in price.
As of this writing, its value has risen another nearly 13%, with the token trading at over $29. This price range represented its highest point in about eight months, after a substantial decline recorded in early November 2022.
Source: Trading View
Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) have confirmed the presence of a strong bullish trend at the time of this writing.
However, the RSI was above 75, signaling that SOL was overbought. This suggested the possibility of a correction before price resumes a more steady trend.
The volume of trading activity also showed a noticeable spike that matched the surge in prices. At the time of this writing, the volume had climbed to over 2.5 billion, which is the highest level seen in about six months.
This increase in volume further contributed to the general bullish sentiment surrounding Solana.
Cardano sees little excitement
Like Solana, Cardano also saw a noticeable upward price trend on July 13. By the close of trading that day, its value had jumped over 23.5% to $0.357.
However, at the time of this writing, it had suffered a slight decline of more than 1%, while still trading within the price range of around $0.35.
The surge in prices propelled ADA into an uptrend and pushed it slightly into the overbought zone, as indicated by its Relative Strength Index (RSI). However, the subsequent slight drop in price gradually pushed it out of the overbought zone, hinting at a potential correction underway.
Source: Trading View
Furthermore, Cardano’s trading volume has seen a significant increase, reaching around $1.4 billion at the time of writing. This volume represents the highest level observed for more than six months.
Ethereum shows slight price increase
Unlike Cardano and Solana, Ethereum showed a relatively modest upward price trend when analyzed on a daily time frame. By the close of trading on July 13, it had gained around 7.14% in price.
But despite this, Ethereum broke above the $2,000 price range, which it had been trading below for a considerable period. However, at the time of this writing, it had experienced a partial retracement of its gains but was still trading around the $2,000 mark.
Source: Trading View
Additionally, the Relative Strength Index (RSI) was above 63, indicating a significant bullish trend. As far as trading volume is concerned, no noticeable spike was observed. The volume was hovering around 13 billion at the time of writing this article.
Short positions are liquidated
The daily time charts of Solana, Cardano, and Ethereum all showed price spikes, albeit with varying trading volumes. These price spikes resulted in a significant liquidation of the short positions.
How much is 1,10,100 ETH worth today?
According to data from Glassnode, on July 13, Solana witnessed the liquidation of short positions amounting to $8.28 million, compared to $2.36 million in long positions. Similarly, Cardano saw the liquidation of $5.22 million in short positions, compared to $1.13 million in long positions.
Ethereum saw the largest liquidation volume, with $35.7 million in short positions closed, while $5.26 million in long positions were liquidated.