The crypto market has seen a notable wave in recent months, with many digital assets reaching new heights. However, one coin that has struggled to keep up with the bullish momentum is Cardano (ADA). Once a frontrunner among the top cryptocurrencies, ADA has recently slipped to the tenth position in terms of market capitalization, surpassed by the ascending toncoin (TON). Cardano has a market cap of $20.7 billion and a 24-hour trading volume of $342.9 million and is trading at $0.5817 as of writing, reflecting a 1.65% daily decrease and a 22.23% drop over the past month. Toncoin (TON), on the other hand, is ranked 9th with a slightly higher market cap of $24.6 billion. However much its price reflects a 5.27% drop over the last 24 hours, Toncoin’s 24-hour trading volume of $6.5 billion is significantly higher than ADA’s, indicating higher liquidity and trading activity.
ADA Data Chart: CoinMarketCap
Despite this setback, analysts remain optimistic about Cardano’s long-term prospects, citing its strong fundamentals and innovative technology. One renowned analyst took to social media to express their confidence in ADA’s bullish macro trend, drawing parallels to a previous cycle when prices soared from $0.05 to an impressive $3 USD.
🚨 $ADA‘s undeniable bull run is here.
This thread is a must read for #Cardano holders.
With its second RSI crossover in history, it’s reminiscent of when prices soared from $0.05 to $3USD.
This rare event, marking a potential trend shift as the RSI crosses its SMA, has… pic.twitter.com/EfOxPTbtGz
— Trend Rider (@TrendRidersTR) April 11, 2024
The analyst highlighted a rare event known as the second Relative Strength Index (RSI) crossover in Cardano’s history. This technical indicator, which measures an asset’s momentum, has proven to be a reliable predictor of trend shifts in the past. According to the analyst, this crossover marks the early stages of a potential bull run, reminiscent of the massive price surge Cardano experienced during its previous cycle.
To add on also, Investors are eagerly awaiting the upcoming upgrades to the Cardano blockchain, which promise to enhance the network’s capabilities and promote further decentralization. Among these upgrades is the Chang hard fork, expected in Q2 2024, which will grant ADA holders voting rights on proposals, fostering a more decentralized governance model.
Cardano undergoes Chang hard fork, community takes over, and Uncle Charlie is out . #Cardano pic.twitter.com/aSCymHJQ2F
— St₳kΣ with Pride 🌈 (@StakeWithPride) April 12, 2024
Additionally, the Ouroboros Leios consensus mechanism upgrade aims to improve transaction efficiency and scalability, addressing two critical aspects for any blockchain network seeking widespread adoption.
While the future looks promising for Cardano, its recent price performance has raised concerns among traders. On both the weekly and daily charts, ADA has exhibited bearish trends. Since March 4th, when it faced rejection at a recent high of $0.81, Cardano has seen a series of bearish weekly candles, with only one bullish candle representing a retracement.
ADAUSD Daily Chart : TradingView
Currently, ADA is trading at a double support level, encompassing the $0.57 demand zone and an ascending trendline zone. With the Relative Strength Index (RSI) reading at 42.52, this confluence of support levels and technical indicators has raised speculation about a potential reversal. However, if this double support is breached, the immediate support level lies at the $0.45 zone. On the other hand, if Cardano manages to garner a rejection and ascend from the current levels, the immediate resistance is situated at the $0.68 zone.
