ADA Near Oversold Levels, Why Cardano Could Retake Previous Highs

Cardano (ADA) has been one of the most resilient coins in the crypto market. While Bitcoin has experienced a 50% correction and has revisited the yearly open, ADA has traded well above its previous lows. At the time of writing, ADA trades at $1,14 with a 2.7% and 4.8% loss in the daily and weekly charts, respectively. The cryptocurrency has managed to make its way into the crypto top 5 by market capitalization after Dogecoin (DOGE) and XRP lost their positions. The latter has been severely hit by the bearish trend and stands at $0,18, while XRP stands at $0,58. At its current levels, Cardano (ADA) recorded a recent Relative Strength Index (RSI), a metric used to the price momentum of a cryptocurrency, low of 27, according to trader Eric Thies. He believes ADA was at a similar low on this metric during March 2020, before the event called “Black Thursday”. As seen in the chart below, last time ADA was at an RSI low, it saw a parabolic increase in its price in the coming months. Thies believes this time it could be more positive, as ADA is resting on former ATHs. In current market conditions, most coins tend to correlate with Bitcoin and its performance. Therefore, BTC’s price must continue with its recovery in order for ADA, ETH, and other cryptocurrencies to recover. Pseudonym trader Crypto Punisher has compared the ADA/ETH trading pair and found a positive outlook for the former. Ethereum has been one of the ...