- Cardano’s ADA stagnated in a tight range between $0.34 and $0.36 this month
- ADA previously registered a positive shift in momentum when it formed a higher high in late September
As a seasoned analyst with over two decades of experience in the ever-evolving world of cryptocurrencies, I find myself observing Cardano (ADA) with a mix of intrigue and caution. The stagnation in ADA’s price action this month has been a bit like watching paint dry – it might not be thrilling, but it’s still part of the process.
On Thursday, Bitcoin experienced modest increases, reaching $68,000 once more after a drop to a weekly low of $66,300 on October 23, during a correction that triggered selling in altcoins. Notably, Cardano (ADA) was among the notable losers in the midweek trading session. Unfortunately, those with bullish expectations suffered yet another setback as they chased the $0.40 psychological milestone.
On the 4-hour chart provided by TradingView, Cardano (ADA) dropped beneath its temporary moving averages on the 23rd of October, following an unsuccessful attempt to maintain a surge beyond the resistance level around $0.37, which forms the upper boundary of the channel.
On Thursday, ADA’s efforts to recover were countered by strong selling forces, unlike most other cryptocurrencies that surged forward in harmony with Bitcoin.
At the current timeframe, a glance at the expanded 4-hour graph suggests that both the 50-day and 100-day moving averages are relatively level, signaling a period of low market volatility and uncertainty regarding the altcoin’s direction.
Furthermore, the day-to-day Relative Strength Index (RSI) value, which has remained near its average during October, supports the absence of a clear uptrend or downtrend that might attract market investors.
Onchain activity post-Chang phase 1
According to data from CExplorer, there’s been a decrease in the number of active accounts and overall transaction volume since the activation of the Chang hard fork on September 2nd.
In my analysis, despite the anticipation that technical milestones would boost involvement, the observed decrease in on-chain activity seems to go hand in hand with broader market tendencies as well.
For much of the year, the expansion of the cryptocurrency market has been restrained, which has caused potential newcomers to think twice before getting involved. However, this occurs even as there have been significant advancements in the ecosystem of alternative coins (altcoins).
ADA/USDT technical analysis
Since the beginning of this month, Cardano’s native token, ADA, has been moving back and forth between approximately $0.33 and $0.36. Even though ADA’s price seems to be stuck in a narrow channel, it is essential not to overlook its recent peak since mid-July, which indicates a potential positive trend.
Currently, as I’m typing this, bulls are aiming to push past the $0.37 barrier, which might initiate more bullish movement and potentially reveal the $0.41 price point on the horizon.
If the price falls a little more than its current level, it will touch the significant support point at $0.31, which was previously tested on the 6th of September.
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2024-10-25 13:43