ADA and DOGE stare into an uncertain future

• ADA and DOGE could be impacted by Celsius’ decision to hold only BTC and ETH.
• The price of ADA could fall and DOGE may not fare any better.

Celsius Network’s decision to liquidate the altcoins in its reserves could have serious consequences for the Cardano [ADA] And Dogecoin [DOGE]. On June 15, the crypto lending platform announced that it planned to convert all of its altcoin holdings into Bitcoin [BTC] And Ethereum [ETH] only.

Starting July 1, Celsius will sell all altcoins from all customers (except Custody and Withhold accounts) and convert them to Bitcoin and Ethereum.

— Celsians (@CelsiansNetwork) June 15, 2023

Read from Cardano [ADA] Price prediction 2023-2024

A look at Celsius’ reserves showed that DOGE and ADA were some of the company’s largest assets. At the time of writing, Celsius had 535,161 ADA and 1,505,693 DOGE.

Celsius has not explicitly motivated the decision. However, there was speculation that it was related to the obscure regulations around certain tokens, of which ADA was one. As a company just recovering from an insolvency, Celsius could do anything to avoid exposure to regulatory scrutiny.

For ADA, the liquidation plan could potentially create selling pressure when Celsius relieves it. This could dampen ADA’s price temporarily, especially as it faced a comparable declining trend recently.

No question about ADA

Based on the technical outlook, bulls’ repeated attempt to create demand at $0.354 has been futile and met with a sharp rebuff. This has led to a descending slopeleaving the ADA trading at $0.26.

And according to indications from the Moving Average Convergence Divergence (MACD), selling pressure could continue. At the time of writing, the MACD was -0.007. A negative value of the MACD indicates that the 12-day EMA (blue) was lower than the 26-day EMA (orange).

Source: TradingView

So if Cardano doesn’t experience increased $0.26 accumulation, it may be difficult to return to a positive trajectory.

As for DOGE, the impact of the liquidation plan may also depend on the size of Celsius Network’s holdings and broader market sentiment.

DOGE’s purchasing power is in the mud

Lately the meme has been experiencing high volatility, indicated by the Bollinger Bands (BB). Also, the BB showed that DOGE just exited an oversold region as the price shifted from touching the lower band.

While the price has fluctuated in recent days, the near-term outlook for DOGE remains largely speculative. However, the Directional Movement Index (DMI) showed that the coin could tilt more to the bearish side.

Realistic or not, here it is DOGE market cap in terms of ADA

At the time of writing, the +DMI (blue) was 8.74. While the -DMI (red) was 36.62 (orange). Comparing highs and lows, this condition suggests more downward pressure than the upside.

In addition, the Average Directional Index (ADX), which is used to measure the strength of the uptrend or downtrend, supported the projection of a bearish outlook as the reading was above 25. At the time of writing, the ADX (red) was 42.74.

Source: TradingView