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

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. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory. Ethereum and Solana also retained gains of 7% and 4%, respectively, following the rate cut.

More Cryptocurrencies News
XRP sees bullish momentum following $123 million increase in open interest

XRP sees bullish momentum following $123 million increase in open interest

XRP exchange reserves in Binance and Upbit have declined by nearly $13 million. In the past three days, investors opened over $123 million worth of XRP positions. XRP needs to overcome key descending trendline resistance to stage a rally to $0.6640.

More Ripple News
Coinbase launches wrapped Bitcoin token on Solana network

Coinbase launches wrapped Bitcoin token on Solana network

Crypto exchange Coinbase announced on Thursday that it has launched its synthetic Bitcoin token, cbBTC token, on the Solana network, marking its first token issuance on the Layer-1 platform. The new token will allow users to stake Bitcoin on Solana and use it as lending collateral.

More Cryptocurrencies News
Solana Price Forecast: Investors stake $1.3B SOL amid November winning streak

Solana Price Forecast: Investors stake $1.3B SOL amid November winning streak

Buoyed by Donald Trump's victory at the polls, the global crypto market entered its third consecutive day on an uptrend on November 7, 2024. Amid the ongoing rally, Solana emerged one of the biggest gainers on Thursday, as demand for native memecoins further propelled market demand for SOL. 

More Solana News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP