US Senate Delays CLARITY Act Vote… Which Altcoins Surged Despite the Bad News?

▲ CLARITY Act vote postponed / ChatGPT generated image ©

Despite the setback of the US Senate postponing the legislative vote to establish a regulatory framework for the cryptocurrency market, Cardano (ADA) and LayerZero (ZRO) are maintaining strong rebound momentum, drawing market attention.

According to investment media FXStreet on August 7 (local time), US Senate Majority Whip John Thune announced that the floor vote on the CLARITY Act, a bill concerning the structure of the US cryptocurrency market, would be postponed until after the summer recess ends next month. When the Senate reconvenes around September 14, after the recess starting this Monday, 60 votes in favor will be needed for a cloture vote.

Bitcoin (BTC), the leading cryptocurrency, maintained stability, consolidating above the $64,000 mark as of Friday, but its upward movement is limited, blocked by the 50-day Exponential Moving Average (EMA) at $64,637. Bitcoin is currently trading below the 100-day EMA of $66,977 and the 200-day EMA of $72,419, indicating a continued short-term bearish bias. The Moving Average Convergence Divergence (MACD) is slightly below its signal line, showing weakening downward momentum, while the Relative Strength Index (RSI) is at 51, suggesting a neutral sentiment.

In contrast, Cardano is forming an upward trending channel, trading above its 50-day EMA of $0.1780 and its 100-day EMA of $0.1970. The MACD indicator and its signal line are rising in the positive territory, and the Relative Strength Index (RSI) is around 68, indicating strong buying pressure. If it breaks past the upper trend line near $0.2150 and the resistance level of $0.2205 (the low from February 6), the upward trend could extend to the long-term target of the 200-day EMA at $0.2578.

LayerZero is currently under overall pressure, trading below its 50-day EMA of $0.8732, 100-day EMA of $1.0408, and 200-day EMA of $1.2871, yet it maintained above the $0.8200 level, up 5% from the previous day. Forming a falling wedge pattern on the daily chart, a decisive breakout above the $0.8732 resistance level could extend its upward movement to the 100-day EMA at $1.0480. While an uptrend continues after a MACD golden cross, the RSI is at 51, suggesting moderate buying interest.

Thus, despite the macroscopic uncertainty of the regulatory bill's postponement, the selective rebound trend in the altcoin market is expected to continue for some time, driven by upward signals from key technical indicators. Key support levels for Bitcoin are identified as the July 6 low of $61,307 and $57,800, while for Cardano and LayerZero, the $0.1970 and $0.7000 levels, respectively, serve as crucial lower defense lines.

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