LIVEš AMBCrypto: Is $ADA Undervalued?
Cardano [ADA]Ā formed a local high at $0.81 nearly a month ago but has been retracing its gains ever since. At press time, it was trading at:
- $0.5969 on KuCoin exchange;
- $0.5965 on WhiteBIT exchange;
- $0.597 on Coinbase exchange;
AMBCrypto looked at social metrics and the price action chart to understand where market participants stand. The 7-day SMA of the social dominance fell rapidly after the 24th of April.
Over the past week, it pushed higher once more. Meanwhile, the social volume has slowly declined since mid-March.
The weighted sentiment was also negative for the majority of the past month. This reflected a bearish sentiment amongst participants in social media. It also came alongside the decline in prices that ADA witnessed in recent weeks.
Technical analysis of the 1-day chart showed that the market structure was, just barely, bullish in this timeframe. The $0.568 swing low from late February did not see a 1-day trading session close beneath it yet.
The weekly chart showed strong bullishness after ADA beat the April 2023 lower high at $0.46 in December and continued to move higher.
However, the RSI was at 41 and denoted a firm bearish sentiment. The Fibonacci retracement levels showed that $0.525 was the next support level that could beckon prices to it.
On the other hand, the OBV has resolutely trended upward since early February. This was an encouraging sight, which signaled that even a drop to $0.525 might be eventually reversed and that the market might not descend into a downtrend.
