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Cardano, along with AAVE and CRV, has been identified by Santiment as one of the altcoins that could benefit from short profit windows, especially during Bitcoin's recent surge above $28,000. The analytics firm suggests that these coins could potentially decouple from the broader market trends, offering traders an opportunity for profit.
As of the latest data, Cardano is trading at $0.26, hovering around the 50 EMA resistance level. Breaking through this barrier could signal a bullish trend, but several indicators suggest caution. Trading volumes have been relatively low, and the Relative Strength Index (RSI) is nearing the overbought zone. These factors indicate that bulls may be losing momentum, making it difficult for ADA to sustain an upward trajectory.
Despite these challenges, the current market conditions offer a short window of opportunity for Cardano. Bitcoin's recent surge has created market volatility that savvy traders could exploit.
While the ascending trend for ADA is not gaining much ground, the coin has shown resilience by maintaining its position around the 50 EMA. This could be a pivotal point for Cardano, as a successful break above this resistance level would likely attract more buyers into the market.
However, traders should exercise caution. The near-overbought RSI levels suggest that the asset could be prone to a pullback. A failure to break above the 50 EMA could send ADA back into a bearish zone, nullifying any short-term gains.
Cardano presents a mixed bag of opportunities and risks. While Santiment's analysis points to a potential decoupling and short-term profit window, other indicators like low trading volumes and a near-overbought RSI suggest that the asset is at a critical juncture.