TL;DR
ADA’s valuation surpassed $0.35 for the first time this month, while Cardano’s network witnessed a rise of some essential indicators.
The RSI, on the other hand, recently entered an overbought territory, signaling a potential price correction.
ADA’s Solid Performance
Cardano’s native token has performed quite well in the past few days, witnessing a 10% price increase on a weekly scale and reclaiming $0.35.
ADA Price, Source: CoinGecko
Its resurgence might have been partially fueled by the broader uptick of the entire cryptocurrency market, where Bitcoin (BTC) spiked to almost $58,500, while Binance Coin (BNB) is eyeing the $550 target. ADA’s uptrend also coincides with the rise of essential metrics in the Cardano ecosystem.
According to IntoTheBlock, the “In the Money” indicator is up 8.3% daily, flashing a bullish signal. This tool shows the change in the number of ADA investors currently sitting on paper profits. As of now, the total share of those in the green is 23%, while 77% remain underwater.
Additionally, the aggregated daily volume of ADA transactions (where each transaction exceeds $100,000) has reached $6.3 billion, representing a 5% spike on a 24-hour scale.
Such a development hints at increased activity that could encourage other investors to hop on the bandwagon, thus injecting fresh capital into the ecosystem.
Separately, we will touch upon ADA’s open interest, which has been rising in the past several days and could signal potential volatility. The metric, which refers to the total number of outstanding derivative contracts, such as futures or options, that have not yet been settled, recently surpassed $145 million for the first time since late August.
A rise in open interest typically signals increased participation in the market, meaning more traders join the ecosystem. It is often a precursor of enhanced volatility and a substantial price move in any direction.
The Bearish Element
Contrary to the bullish indicators mentioned above, one metric suggests that the price of ADA could soon head south. This is the Relative Strength Index (RSI), which exceeded a ratio of 70 today (September 12).
It varies from 0 to 100, with readings above 70 signaling that the asset is in overbought condition and correction could be incoming. Conversely, a ratio below 30 means that ADA is in oversold territory, indicating a potential price rally.
Recall that ADA’s RSI tumbled to 14.9 in early July (its lowest level this year), with the token’s valuation jumping by 22% a few weeks later.
The post Volatility Ahead? 2 Bullish Cardano Signals Flash as ADA’s Price Rises 10% Weekly appeared first on CryptoPotato.
