Crypto Market in Holding Pattern: Solana Fights for Trend Reversal, Cardano Shows Strength

Bitcoin Stabilizes Ahead of Fed Decision

The crypto market is currently in a holding pattern. Bitcoin has managed to stabilize in the $90,000 range and is currently trading at $93,902 – three percent above the previous week's level ^[2]. One day before the Federal Reserve's key interest rate decision, investors are awaiting new monetary policy signals. Only Ethereum is showing relative outperformance amid fresh inflows into spot ETFs, posting double-digit gains compared to the previous week ^[2].

At the start of the week, Bitcoin spot ETFs experienced renewed outflows of approximately $60 million ^[2]. The Bollinger Bands on the 4-hour chart are increasingly tightening, suggesting a major price movement in the coming days ^[2].

Solana Struggles with Key Resistance Level

Solana is facing a critical phase. The high-speed blockchain's price has repeatedly failed to reclaim the resistance level of $145 in recent attempts ^[2]. After a pullback to the support level at $128, SOL is attempting once again in recent hours to reclaim the 20-day moving average (EMA20) and approach the previous week's high ^[1][2].

Only a sustained recovery of the 20-day line could turn the tide in favor of buyers and brighten the chart picture ^[1]. A break above the resistance zone at $145 would unlock fresh upside potential toward the 50-day moving average (EMA50) at $153 ^[2]. On the downside, a decline below $126 could push the price down to at least $121 ^[2].

Cardano Shows Positive Momentum Signals

Cardano, meanwhile, is currently in better condition. The ADA price moved within a range of $0.4239 and $0.4400 over the past 24 hours ^[3]. At the current price of $0.4297, ADA is trading just above the EMA-20 at $0.4271 ^[3].

The Relative Strength Index stands at approximately 58.0, signaling moderate buying momentum ^[3]. Since early December, the structure has shown predominantly higher lows and recently slight higher highs around the $0.4400 mark ^[3]. A breakout above $0.4400 with volume would activate the next target at $0.4558 ^[3].

Defensive Strategy in Uncertain Market Conditions

Professional investors remain cautious given unclear market implications. In a model portfolio with a $100,000 base, approximately 60 percent of investment capital remains allocated to the stablecoin Tether (USDT) ^[2]. In addition to Bitcoin and Ethereum, the portfolio includes positions in Solana, Aave, Binance Coin, and Zcash ^[2].

Notably, Zcash is showing relative strength and has recovered significantly after retesting support around $300 – posting approximately 20 percent gains compared to the previous week ^[2]. Binance Coin also ranks among the few altcoins that can maintain positions above their 200-day moving average ^[2].

Outlook for a Volatile Trading Week

This week, all eyes are on the U.S. Federal Reserve's interest rate decision ^[2]. Investors should expect increased trading volatility in the coming trading days ^[2]. As long as no sustainably bullish market impulses are evident, a risk-averse stance remains advisable ^[2].