Many analysts are projecting the return of the altcoin season, with coins like Cardano (ADA) experiencing a price rise. At press time, ADA price had increased by 1.91% over the past 24 hours. ADA technical indicators suggest cautious optimism.
Threat of Cardano Death Cross
Amid the high volatility, Cardano has traded from a low of $0.5821 to a high of $1.134, positioning it for a 'death cross'. The ADA/USD chart shows a difference between the 90-day and 200-day Simple Moving Average (SMA). A 'death cross' occurs when the 90-day MA crosses below the 200-day. Currently, the ADA chart shows a widening divergence from the rally. Other Cardano on-chain metrics also indicate a growing interest, reducing the threat of a 'death cross'.
Is Altcoin Season Returning?
Cardano's resurgence is mirrored in other leading altcoins like XRP, which has also seen a bullish reversal. Recent trends suggest a potential return of the altcoin season. However, the correlation of altcoins with Bitcoin might cause more volatility.
Impact of Macroeconomic Factors
Macroeconomic factors such as the Federal Reserve's interest rate policies continue to exert pressure on Bitcoin's price. With inflation still a concern, shifts by the Fed could impact BTC and create volatility, which may affect altcoins.
While the forecasts are favorable for the onset of the altcoin season, external factors could significantly alter the market. Trading volumes and interest in Cardano show optimistic investor sentiment. However, attention to macroeconomic indicators and Bitcoin correlation remains crucial.
