Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Many analysts are projecting the return of altcoin season, with coins like Cardano (ADA) charting a visible rebound course. At press time, the price of Cardano had jumped by 1.91% in 24 hours to $0.7288, which might be the start of an epic rebound. Amid this shift, the ADA technical indicators hint at optimistic caution for traders.
Threat of Cardano death cross
At the high of the volatility recorded over the past few weeks, Cardano traded from a low of $0.5821 to a high of $1.134. The divergence in price has positioned the coin as a prime candidate for a death cross shift.
Tomiwabold Olajide
The ADA/USD chart shows the difference between the 90-day and 200-day Simple Moving Average (SMA). Typically, a death cross emerges when the 90-day MA crosses below the higher average of 200. For now, the ADA chart shows a widening divergence emanating from the ongoing rally.
Other Cardano on-chain metrics also show the coin is tending toward a renewed rally push with a surge in open interest. The trading volume has jumped by over 47% to $754.76 million in 24 hours. Cardano has growing interest, a sign that the death cross shift is fading.
Is altcoin returning?
The resurgence in Cardano is also reflected in other top altcoins like XRP. Notably, the third-largest digital currency has also scored a bullish reversal amid a positive shift in trading volume.
Gamza KhanzadaevThese latest trends have triggered the sentiment that the altcoin season might return to the limelight. However, the association or correlation of altcoins with Bitcoin is poised to trigger more volatility ahead.
Macroeconomic factors like the Federal Reserve’s interest rate policies still weigh down Bitcoin's price. With inflation still a concern, shifts from the Fed may impact BTC, causing volatility that may or may not influence bullish rallies. The altcoin’s rebound, while possible, is also tied to general market sentiment.
Vladislav Sopov
Dan Burgin