Cardano (ADA), the 10th-ranked cryptocurrency, has dipped by over 37% in the last 30 days as it continues to battle bearish conditions. Cardano, Solana and Toncoin are among the worst performers recently on the crypto market.
However, it appears that ADA might soon overcome the downward spiral and begin its recovery journey, as per a key indicator on the Cardano chart.
Cardano’s oversold metrics hint at possible reversal
According to CoinMarketCap data, in the last 24 hours, Cardano lost 9.72% of its value as it breached the $0.40 support.
As of press time, Cardano was changing hands at $0.3824, a significant decline for an asset that is struggling to remain among the top 10 ranked cryptocurrencies in terms of market capitalization.
However, Cardano’s Relative Strength Index (RSI) is currently at 22.11, signaling strong oversold conditions for ADA.
Cardano Price Chart | Source: TradingView/CoinMarketCapThe trading volume has soared by 108.1% to $845.54 million within this period. This is a clear indication that the transaction rate has remained high as investors reassess their positions amid declining prices.
With Cardano’s RSI at such a low level, the coin has slipped into an oversold zone.
This development is likely to trigger a price reversal as holders might stop dumping their coin onto the market. Also, it is likely that Cardano whales might step in and attempt to mop up the oversupply to reduce sell pressure.
Could Midnight launch trigger recovery?
Meanwhile, in order to boost ADA’s visibility, the Cardano Foundation has voted “yes” to list the coin on several exchanges. The move aims to expand Cardano’s listing on centralized exchanges, with expectations that it could increase adoption of ADA and impact its price outlook.
Already, Coinbase exchange plans to roll out round the clock trading, beginning Dec. 5. Seven days later on Dec. 12, Coinbase will launch new U.S. perpetual-style futures for Cardano and other altcoins.
The month remains significant for the ecosystem as members of the community are looking forward to Dec. 8, when Cardano’s Midnight blockchain’s NIGHT token will launch.
Source: https://u.today/cardano-price-rebound-teased-by-this-indicator
