Bitcoin price has surpassed $34,200 at the time of writing this article, disappointing those who were expecting a drop after reclaiming a critical level. We will witness several important developments in the macro landscape next week. Moreover, the expectation that interest rates will not be raised can further increase the demand for BTC. So, what is the current state of the cryptocurrency of the day?
In the midst of the recent Bitcoin rally, ADA Coin has performed well in the market average. The price has increased by 12% in the past 7 days, which is not too bad. CryptoDep, a crypto expert, draws attention to the social volume of Cardano despite the price. In a recent post, he stated that ADA‘s social interaction reached 138 million and its social dominance reached 10.7%.
LunarCrush data was also positive for social volume. ADA Coin had an Altrank score of 19. These figures imply that the price would increase further under normal circumstances. However, for high market cap altcoins like Cardano, things do not progress as easily in the ongoing low-volume environment.
According to CryptoQuant data, ADA’s RSI and stochastic indicators indicate overbought conditions. This suggests that the price could drop below the market average as the demand normalizes. The Money Flow Index (MFI) was also in the overbought zone. Again, the increase in BTC and the rise in ADA Coin’s CMF suggest that it could be a new test for the resistance level.
On the weekly chart, ADA Coin has formed a nice candle and is not too far from the peak. If the BTC price continues to rise and ADA Coin reclaims the $0.304 level, investors could see a new peak between $0.33 and $0.38. If the rally continues, $0.46 would be the third significant target. This also indicates a clear upward trend.
The ongoing recovery could target $1 with the opening of the $0.61 and $0.6833 resistance zones. Of course, the cumulative volume, which dropped to $25 billion, needs to recover again for this to happen.
What is clearly noticeable on the daily chart is stable profit-taking at resistance areas. However, as the price has not broken the uptrend line despite upper wicks, it can surpass $0.3 and $0.33.