Due to the bearish market conditions, Cardano’s (ADA) price rise may not fulfill its objective of reclaiming $0.50 as a support floor.
Investors still have a shot at changing the bearish outcome should they exhibit optimism.
Cardano May Face Increasing Bearishness
Like the rest of the cryptocurrencies, Cardano’s price rose, but unlike other altcoins, ADA’s rally may be stopped before it can reclaim its key price level. The reason behind this is the saturation of bullishness in the case of Cardano.
According to the Relative Strength Index (RSI), ADA is overbought. The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a market.
Given Cardano’s price is above the threshold, it could potentially face the brunt of being overbought. Historically, this instance has been followed by corrections during which ADA notes considerable declines. This could be the outcome for the altcoin this time around as well.
ADA holders, however, do have the power to change this outcome. However, they would need to exhibit more optimism. Due to the recent decline, Cardano investors barely participated in the network.
This is evident in the total number of transactions conducted on the network in the last couple of weeks. Lesser participation leads to lower liquidity, keeping the price sideways bound or in a decline.
Read More: Who Is Charles Hoskinson, the Founder of Cardano?
Thus, as investors’ behavior changes, the ADA price’s direction will change, too.
ADA Price Prediction: A Dip Ahead
Cardano’s price, trading at $0.48 when writing, exceeded the resistance at $0.46. The latter has been consolidating the altcoin, and a breakout from it increased hopes of a rise to $0.50.
$0.50 is a crucial psychological support floor, but ADA may not be able to reach this level. The aforementioned conditions present a bearish outlook, suggesting a potential drawdown to $0.46 or below, sending ADA into consolidation again.
Read More: Cardano (ADA) Price Prediction 2024/2025/2030
However, if ADA holders act bullish, the price rise could continue or bounce off the support at $0.46. This could invalidate the bearish thesis, extending the gains.
Disclaimer
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