Bitcoin Cash (BCH) has surged astonishingly, while Cardano (ADA) has fallen against the trend, as traders turn their attention to The Federal Reserve (FED).

Gate News, the impact of the ceasefire between Israel and Iran seems to have been absorbed by the market, with the early momentum of this week replaced by today's relatively calm trading atmosphere. Only PI coin and Maple Finance have seen rises of over 10%, while the average rise among the top 100 crypto assets by market capitalization is about 2%. The average fall of these crypto assets is similar, reflecting the general wait-and-see attitude of the market.

However, purchasing power still exists as the total market capitalization of Crypto Assets slightly rose to $3.283 trillion, increasing by 0.81% in the past 24 hours.

On the other hand, traditional financial markets remain stable. The S&P 500 index rose slightly by 0.07% to 6097 points, and the Federal Reserve continues to maintain its benchmark interest rate unchanged at the range of 4.25%-4.5%. Federal Reserve Chairman Jerome Powell stated that the central bank is "prepared to be patient" and will wait for clearer signals from the economic sector before taking the next steps.

Looking ahead to June, analysts at Myriad, a market forecasting platform operated by Dastan (the parent company of Decrypt), believe that the performance of the Nasdaq will outperform the S&P 500 index.

Despite the overall calm in the market, there are still some highlights. Bitcoin Cash (BCH) and Cardano (ADA) are two notable tokens that have caught the attention of investors—perhaps in search of some excitement during an otherwise uneventful trading session.

BCH erupts astonishingly

BCH is considered the first fork coin of Bitcoin - it has just made a strong impression with a 6% rise, reaching $481.30, officially breaking through the important resistance level of $470. This price level has been a strong resistance for most of this month, making the current breakout even more remarkable, especially in the context of high trading volume and a series of bullish technical signals.

The Relative Strength Index (RSI) is at 61, indicating that bullish momentum remains strong but is not yet overbought. This suggests that the bulls are still in control of the market, and there is still room for further upward movement before the price reaches 70 (where profit-taking typically occurs). An RSI in the 50-70 range is usually considered a positive zone, which enhances market confidence in the current upward trend.

Meanwhile, the Average Directional Index (ADX) is currently at 20, below the 25 threshold that confirms a strong trend. However, the slight upward trend in the ADX indicates that momentum is strengthening and could trigger a more significant breakout. It is important to note that the ADX does not indicate whether the trend is rising or falling; it merely measures the strength of the trend—when it exceeds 25, it indicates that a new trend has formed.

From the perspective of moving averages, the trading price of BCH is above the 50-day moving average (approximately $385) and the 200-day moving average (approximately $352), forming a clear gap. This is seen as a strong signal indicating that the current rising trend is not only clear but also persistent. In particular, the 50-day moving average being above the 200-day moving average indicates that short-term momentum is superior to the long-term trend—reflecting positive market sentiment as investors are willing to pay prices far above those from a few months ago.

In addition, the squeeze momentum indicator is currently in an "on" state and pointing upwards, indicating that the previous price compression phase is being released upwards. This tool is typically used to identify the timing of the market entering a strong volatility period after a calm phase. While it's not definitive, the "on" state is a noteworthy warning: a significant breakout— or a major pullback— could be just around the corner.

Overall, BCH is in a clear rising trend, but the market still appears somewhat hesitant, with conflicting signals from some technical indicators. This makes the current price range an important psychological test for both bulls and bears.

(Source: Trading View)

ADA significantly weakens

In a recent live stream, Cardano founder Charles Hoskinson made an interesting suggestion: to use nearly $100 million from Cardano's funds to purchase a basket of stablecoins, Bitcoin, and other synthetic assets.

This proposal can be interpreted from multiple angles. The positive side is that it attempts to enhance the liquidity of the Cardano decentralized finance (DeFi) ecosystem while promoting decentralization - a key factor for sustainable growth. However, the negative side is that the proposal raises a question: has the development team lost confidence in ADA - the flagship coin of the network? ADA has not had a clear growth cycle since 2021.

The market reaction in the past 24 hours indicates that skepticism has overwhelmed expectations. With a series of technical signals simultaneously issuing negative warnings, the price of ADA has fallen significantly by 3.5%, dropping to $0.5669.

The RSI has now fallen to 35, approaching the oversold zone below 30. Although it is not fully oversold yet, such a low RSI level indicates that selling pressure is increasing. While oversold conditions can sometimes trigger technical rebounds, the current weak momentum suggests that the downtrend may continue. In fact, an RSI below 40 typically indicates that bears are in control, especially when accompanied by other negative signals.

Meanwhile, the ADX reached 26—this level indicates that a strong trend is forming. However, when the current trend is downward, a high ADX is not a good thing. On the contrary, it enhances the strength of the downward momentum. This is also why technical analysts always associate the ADX with the direction of price: a high ADX combined with a price fall usually means that momentum is weakening.

The trend of ADA does not stop here, as its trading price is currently below the 50-day moving average and the 200-day moving average—this is a concerning signal for both short-term and mid-term prospects. When the short-term moving average falls below the long-term average, it typically indicates persistent selling pressure and a decline in investor confidence.

Finally, the squeezing momentum indicator is also in a "closed" state, with momentum being negative, indicating that the recent consolidation phase has been broken and has broken down. The price movement has "compressed" to negative values, and the current trend is likely to continue in the short term.

(Source: Trading View)