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- Cardano (ADA) might be one of the few altcoins gearing up for a major bullish rally, as prices hit a critical zone.
- ADA still has the potential to hit the $0.33 price mark.
Altcoins in the cryptocurrency market have been experiencing a rough ride since the start of August. While mild price upswings have been recorded, losses have also begun to pile up. For Cardano’s ADA, the 7th most valuable cryptocurrency by market cap, the days ahead are extremely crucial for the asset.
According to ADA’s technical chart, a major rejection at the $0.38 horizontal resistance area was recorded back in July. Although the market reflected that selling pressure was increasing, as it seemed like the bears had taken over, a downward movement was initiated.
At present, the downward movement is still in motion, as the price of the altcoin sits slightly above the $0.25 price zone. It bears mentioning that ADA has traded above this level for most of the year.
The weekly RSI has also failed to give a clear indication of the market’s potential direction. The Relative Strength Index (RSI), is a popular momentum oscillator commonly used by market players. If measures the speed and change of price movements. The RSI oscillates between zero and 100. When positioned above 70, the RSI is considered to be overbought, while it’s considered to be oversold when below 30.
At present, the RSI indicator is increasing, although it’s still below 50, as such, market players are unable to predict ADA’s current position.
ADA could either go up to $0.33 or decline to the $0.25 price levels
Going forward, there are only two possibilities in sight; ADA soars to new levels or drops to newer lows. Currently, ADA, like many other altcoins, is sitting in the red zone. In the near term, the asset could drop by as much as 10% if losses continue to pile up. This will send ADA down to the $0.25 price mark. The decline might continue into the weeks ahead.
On the other hand, if ADA bulls build momentum and push prices higher, the asset could attempt to club the ascending support level. This would see ADA surge by 20%, confirming a break above current resistance levels, and sending the asset to the $0.33 price mark.
At press time, ADA is trading for $0.26, after losing more than 4% in gains, over the past 24 hours.
Interestingly, ADA’s trading volume is reflective of a mild recovery from the bulls. Trading volume is up by 68%, over the past 24 hours.
It bears mentioning that the Cardano network has also recorded its fair share of losses this year. A significant number of Cardano whales have withdrawn an estimated $29 million within a 7 days time frame. Network activity has since gone on to decline progressively since July.
