u.today
The price of Cardano (ADA) is losing its crucial edge on the market as it entered a consolidation phase that proves it is truly oversold. Per data from CoinMarketCap, the price of Cardano has dropped in 24 hours from $1.09 to its current price of $0.9998, down by 1.03%. Losing the $1 support zone spells a dire outlook for the coin as overheating and volatility spark rare sentiment.
Cardano sell-off, is bubble over?
The ADA Relative Strength Index (RSI) is pegged at 78, showcasing its massive overbought sentiment. With the fall below $1, how hard it could fall remains to be seen.
Cardano breached the $1 benchmark on Nov. 23, ending a more than three-year stalemate below the level. Over the past month, the protocol has ranked as one of the best-performing assets on the market.
With the price of Bitcoin (BTC) falling from its ATH above $99,000 to $95,000, market sentiment has shifted, with a potential return to pre-hype levels.
Over the past week, Cardano has still been up by over 33%, with the monthly surge soaring by 204%. During this period, data from IntoTheBlock hinted that 68% of addresses on the network are "In the Money" or profitable. It is logical that these profitable traders are choosing to sell off.
Anchor points for Cardano
Amid the ongoing price sell-off, Cardano, like other altcoins, is focusing on developmental growth. From the decentralization push of the Chang hard fork to the Hydra Doom testnet update, the protocol is pushing to become a reference point in the industry.
Over time, Cardano has presented itself as a formidable competitor to key rivals like Solana. While SOL has a history of downtimes, Cardano recently celebrated years of uptime, a major validation of its reliability.
With the sudden shift to a massive rally stunning the broader market, the overall outlook for Cardano remains bullish. This might help it pull off a major comeback as the market settles.