After 200% rally for the Cardano ADA price, the altcoins suffered slight retracement due to harrowing on-chain and technical signs that we are reading more about in the upcoming Cardano news.
While there are some people that think the asset will gain, even more, there could be some technical signs that prove different. According to a crypto trader, ADA’s price action is not looking too well on a macro scale. He shared charts to convey this point. It shows that the prominent altcoin printed two-topping candles at $0.13 and $0.14 range while the one-week RSI reached into an overbought region after 200% rally. Another analyst shared the sentiment with a chart noting that ADA’s recent price action suggests that there will be more correction which could bring the asset back to $0.10. The expectation of correction could be corroborated by the on-chain analysis.
Crypto trader Ali Martinez shared the data from IntoTheBlock, a blockchain analytics company which shows that while there is considerable support below the price, there is on-chain resistance up until $0.154:
“The area between $0.123 and $0.154 represents a significant hurdle for #Cardano’s uptrend. @IntoTheBlock reveals that approximately 4,200 addresses hold nearly 160 million #ADA around this price level.”
Cardano is flashing warning signs but analysts believe that the altcoins are poised to retrace after the rally in the past few weeks. One trader said that Bitcoin dominance is poised to correct the upside because the “altcoin party” is over because of three important factors:
- Bitcoin’s dominance will bounce off the current support
- BTC traded in a single range for over 70 days while volatility sunk to one-year lows
- If the breakout comes, Bitcoin will lead
- Q3 is known to be a bearish quarter for the crypto market as altcoins often underperform the market leader during a bear market
Some believe that ADA is poised to continue higher but if it breaches the local high of $0.14 will that happen. Nik Patel, a popular crypto analyst, and writer noted that Cardano could continue gaining as the buying volume continues:
“Turning to the daily, we can more clearly see the strength of the trend, with price now using that previous high at $0.11 as support for the next leg up. If we get a close above $0.14 on the daily, I’d expect the rally to continue on towards that $0.20 area.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at edi[email protected]