Cardano’s native coin ADA is finally starting to show signs of life after months of negative price action. While the Cardano community’s sentiment recently took a beating following Charles Hoskinson’s controversial statements, on Friday, the digital asset confirmed a major bullish setup.
Cardano RSI finally turns bullish
According to an X post by crypto analyst Token Talk, ADA’s relative strength index – or RSI – has printed a higher low on the daily chart. This stands in stark contrast to the cryptocurrency price action which has recorded another lower low, continuing its downtrend.
For the uninitiated, the RSI is a momentum indicator that measures the speed and magnitude of recent price movements to help identify whether an asset is overbought or oversold. Traders also use the RSI to spot momentum shifts and potential trend reversals through signals such as divergences and breakouts.
Token Talk added that the price rally which will follow this bullish divergence will confirm that buyers are firmly in control of the ADA market. Notably, ADA could be eyeing a price target of around $0.20, around 22 percent above its current trading price of roughly $0.16.
Fellow crypto analyst Sssebi shared a similar bullish outlook on ADA. The analyst shared the following daily chart, emphasizing that the cryptocurrency has likely made a bullish double bottom pattern.
They added that the real test for ADA is now to break through the 500-day moving average resistance level. If ADA can break this and start closing above it, the market can see a trend reversal.
That said, some analysts are still warning against buying ADA. Seasoned crypto analyst Ali Martinez warned on June 25 that ADA may be setting up bull traps for buyers.
Easier times ahead for ADA?
As mentioned earlier, the Cardano community’s stance toward ADA soured earlier this year when the project’s founder, Charles Hoskinson cautioned that Cardano is likely to face “tough times” in the coming months.
On Wednesday, one of Cardano’s founding entities, EMURGO, stepped down from its duties as a member of Cardano community group called Pentad.
That said, excitement for Cardano’s upcoming V11 “van Rossem” hard fork is palpable. The cryptocurrency has jumped from $0.13 on June 26 to as high as $0.19 on July 4, before losing some of its gains and consolidating around $0.16 as of Friday.
