Friday, 12 April 2024

Crypto News

Cardano’s ADA Price Struggles to Find Direction; Galaxy Fox Sells Over 2.7 Million Tokens in Ongoing Presale

Cardano’s ADA Price Struggles to Find Direction; Galaxy Fox Sells Over 2.7 Million Tokens in Ongoing Presale

Cardano’s ADA price has been fluctuating this week, down around 2.5% to trade around $0.58. However, this minor pullback shouldn’t alarm ADA holders too much, considering some other major altcoins like AVAX, XRP, and SOL have dropped almost 10% in the same period.

In the meantime, Galaxy Fox continues its fairly decent presale where they have sold over 2.7 million GFOX tokens, demonstrating strong interest from investors. The meme coin raised over $3.5 million so far in its presale event.

Cardano (ADA) Price Action and Analysis

So as mentioned, the ADA price did not change much in the last 7 days. In fact, the price is not far from its 2024 yearly high of around $0.63 set just a few days ago.

Analyzing the ADA/USDT chart, we can see that the price has been trading in a sideways (parallel) channel since December (blue lines on the chart) between $0.45 and $0.67 (December high and 2023 high). 

This neutral price pattern indicates market indecision. Trend traders may want to wait for a definitive breakout in either direction before entering new positions, although typically breakouts occur in the direction of the prevailing trend. Swing traders can aim to trade the range by buying near support and selling near resistance.

The 200-day moving average is currently set at $0.39. For those unaware, the 200-day moving average is a widely-followed technical indicator that smoothes out price action to identify long-term trends. The fact that the ADA price remains comfortably above this level is considered a bullish sign by analysts.

Additionally, the RSI (Relative Strength Index) on the daily ADA chart presently reads 44. The RSI is a momentum oscillator that fluctuates between 0 and 100, with readings above 70 generally considered “overbought” and readings below 30 viewed as “oversold.” The current RSI suggests ADA still has room to rally before becoming overheated on shorter time frames.

As tweeted recently by popular crypto analyst Ali:

“The TD Sequential indicator shows a sell signal on the #Cardano 3-day chart. It’s important to note that the last two times this indicator signaled bearish, $ADA experienced a price correction!”

For context, the TD Sequential is a technical indicator that identifies overbought/oversold conditions to generate trading signals. Ali’s observation indicates ADA may be primed for a pullback after…

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