The crypto market is earnestly waiting for the United States Securities and Exchange Commission (SEC) to pronounce itself on the spot Bitcoin ETF applications before it.
The regulator is expected to approve one or several of the 14 spot Bitcoin exchange-traded fund (ETF) applications by Jan. 10.
How the market will react if a spot BTC ETF is approved remains something to be seen with analysts divided, with some expecting the continuation of the rally while others anticipating a “sell-the-news” scenario.
If Bitcoin witnesses aggressive buying over the next few days, altcoins are expected to follow in its footsteps. Let’s analyze the price actions for Solana (SOL) and Cardano (ADA) to see the key levels to watch over the next few days.
Solana price analysis
SOL trades at $102, up 12.5% over the last 24 hours, according to data from CoinMarketCap.
The RSI was facing upward, suggesting that the bullish momentum had begun gaining traction after the recent correction toward $085. The bull will now focus on kicking the price above the upper boundary of the falling channel at $105. If this happens, the pair could rise to the recent swing-high of $126. This level may be a formidable barrier for the bulls to cross.
SOL/USD Daily chart
On the downside, the bears will have to sink and sustain the price below the ascending trendline and eventually the 50-day EMA at $83 to intensify selling. The pair may then tumble to $66, where the 100-day EMA lies.
Cardano price analysis
Cardano (ADA) is exchanging hands at $0.53 after rising 11% over the last 24 hours. This comes after Cardano’s recovery attempt near the $0.57 major resistance level on Jan. 4 and resumed their selling from Jan. 5.
Intensive selling sank the price below the 50-day EMA at $0.52 on Jan. 7, signaling that bears are in control. The bulls tried to start a relief rally from $0.46 on Jan. 8, but are currently facing aggressive selling at the $0.55 psychological level.
The RSI is positioned in the negative region. The price strength at 45 suggests that the bears are in control.
If the current correction continues and BTC breaks below $0.46, the selling could accelerate, and the ADA/USDT pair may plunge to $0.398, embraced by the 200-day EMA.
ADA/USD Daily Chart
On the downside, if bulls want to prevent the fall, they will have to quickly drive the pair above the $0.55 barrier. The pair may then climb to the downtrend line around $0.60.