Why the crypto bloodbath can present a unique opportunity for Cardano’s ADA price
|- Cardano price is rallying strongly in early morning trade.
- ADA price could be set to recover back above $0.60 altogether.
- If this rally continues, ADA price could break above a crucial technical hurdle.
Cardano (ADA) price is set to book a solid intraday rally which makes one wonder if ADA traders are aware of what is happening in the markets. With global markets rattled and coiled by inflation worries and several asset classes on the back foot, Cardano price is a bit of an outlier today, with price action jumping significantly. Even the drop since last week was not enough to push the Relative Strength Index (RSI) into oversold, which says a lot.
ADA price sees RSI still not touching oversold
Cardano price is thus being supported by the bulk of bullish traders, even if global markets and cryptocurrencies are facing severe headwinds. Price action already broke above the high of Monday at $0.498 and looked set to rally even higher. The RSI, meanwhile, has executed a knee jerk reaction against bears who have been squeezed to the upside and stopped out on their latest attempts to run price action down.
ADA price has a clear target at $0.640 once it can close above the high of Sunday at $0.560. This level is important because it is where the 55-day Simple Moving Average (SMA) intersects with the monthly pivot and is, therefore, a critical hurdle that could spark more optimism if bulls can break above it. From there opens even more upside potential to possibly even $1.00 if global markets fall in line and see headwinds fade and hand over to tailwinds.
ADA/USD daily chart
The risk to the downside comes with a possible false relief rally that would see a drop below the low of Monday. That would open even more room to the downside with 15% losses towards the monthly S1 at $0.370. The red descending trend line below there could trigger a small excursion for bears just below the previously mentioned S1 support level, but it will be defended by bulls and probably trigger a bounce.
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