Cardano's (ADA) price has surged significantly over the past 24 hours, hitting a one-month high. Key analytical metrics point to further growth potential, but the Relative Strength Index (RSI) warns of a potential correction.
ADA’s Resurgence
Cardano (ADA) has been among the top-performing leading digital assets in the last 24 hours, with its price hitting a one-month peak of over $0.39. Its market capitalization pumped to $14 billion, making it the 11th-largest cryptocurrency.
Key Bullish Factors
The first crucial indicator is the 'In the Money' metric, which, according to IntoTheBlock, increased by 10.5% daily. About 31% of ADA holders are now in profit, while 66% are underwater. The second bullish factor is the large transaction volume, where each on-chain transaction exceeds $100,000. The figure reached $6.6 billion on September 25, a 12% increase in 24 hours. Lastly, the Network Value to Transactions (NVT) ratio is currently set at 2.7, indicating that the token is undervalued. Analyst CryptoBullet predicts the ADA price to reach $1.80 next year, with a possible correction to $0.15.
Bearish Element
ADA’s Relative Strength Index (RSI) suggests the asset could be poised for an imminent correction. RSI measures the change and speed of price movements, ranging from 0 to 100. Readings above 70 signal potential overbought conditions. Currently, ADA's RSI is around 70, briefly spiking to 81 on September 24.
Cardano is showing notable recovery, supported by strong analytical metrics. However, high RSI levels suggest a potential correction, making the current growth phase uncertain from an investment perspective.
Comments