The ENV channels show that traders drive prices higher while a long wick indicates rejection to the downside. The token has reached an oversold zone with low volume in the long term, but that is only a bullish signal.
Cardano (ADA) is one of the cryptocurrencies competing to dethrone the Ethereum native token Ether (ETH). However, it has suffered a considerable drop from its all-time high above USD 3 to its current price of USD 0.48. This time may be the best to buy it, as the price may rise and investor bearish sentiment seems to have changed.
ADA is trading at around USD 0.4694 and has accumulated a 3.7% loss over the last 24 hours. While its daily trading volume is above USD 681.13 million, its market capitalization is about USD 15.86 billion, according to CoinGecko.
Investors Take Advantage to Buy Cardano as It Strengthens
The upcoming Cardano upgrade will include a node for use with the Vasil hard fork.
The ADA DEV team had several days of delays, usually happening among programmers, especially if they have to work on many details. That new upgrade will be positive for dApp developers and might have a favorable impact on the price.
According to LunarCrush, some social volumes of ADA have been increasing after reaching a bottom. The most prominent was that of YouTube, which rose from 2 to 21 points in a few days.
It is relevant to mention the recent investments by leading entities like Grayscale, which recently increased its Cardano allocation to 32.33%. That is positive for the crypto asset in question, but it is also a risk warning for Ether.
The Technical Analysis Indicates the Trend Is Bullish
The technical indicators in the 4-hour timeframe show a bullish trend, but there is still a resistance level at USD 0.52. The price must go beyond that ceiling to look for new areas of interest.
Besides, that channel has followed the trend with increasingly high lows. In addition, the ENV channels show that traders buy/sell and drive prices higher. However, the candlesticks are at the bottom, while a long wick indicates rejection to the downside. Therefore, a short-term rally should take the ADA price to around USD 0.52.
The Stochastic RSI located in oversold territories below 20 points confirms that fact. Even though its moving averages have not crossed to the upside, it is a sign of an imminent change in trend.
Weekly Charts of the Price of Cardano
The weekly time frame shows that the token has reached an oversold zone with low volume in the long term. As that is only a bullish signal, the price will be seeking to get to the ENV channels within the next few months. The primary resistance is at USD 0.72 and then will look to reach the US dollar again.
Before confirming a rise in the weekly timeframe, the RSI must point above 50 points and exceed the 14-period MA.
By Alexander Salazar
