You cannot deny that Cardano benefited from the recent rally, gaining over 47% while writing this content. Meanwhile, ADA appears to enjoy a market monopoly as the alt moved to the fourth position in the altcoin space. Such actions have attracted crypto enthusiasts. Keep in mind that Cardano stands 11% away from the ATH.
For now, Cardano seems to have the potential to rally towards the awaited $5 level. Some metrics support the movements. However, here are the T&Cs for the alternative coin to rally high.
ADA Current Outlook
The RSI is a vital trading indicator, useful for market sentiments and investments. For ADA, the weekly chart RSI shows room for the alt to enjoy higher highs. Notably, the weekly Relative Strength Index hovers in the neutral territory since 17 May. Meanwhile, ADA has never been in the overbought area since then until the recent actions. Moreover, ADA breached the RSI’s plunging trend, a solid recovery move.
The Way towards $5
Dan Gambardello highlighted ADA’s ‘clear path towards $5″ through his recent YouTube video. He talked about the RSI historical trend. Moreover, the ecosystem’s external developments support the surges. Gambardello noted how Cardano’s overbought scenario at $1 translated to a 140% uptick to the crypto’s ATH. Meanwhile, a 140% hike from the asset’s current value will push ADA towards the $5 level.
Although Cardano was not in the overbought zone as back then at $1, it hovered in the green box, confirming the Alonzo update period.
For now, ADA has enough potential to move upside. That is according to the highlights by Gambardello. Remember, on 14 August, ADA had its daily RSI at its February levels. If it sustains its trends, Cardano will enjoy a smooth path towards $5.
A Downside Move is Possible
Meanwhile, everything that appears perfect might not be. As far as Cardano is concerned, one fault exists. The altcoin saw low trading volumes amid its recent rallies. The May and January upticks had more trade volumes than the current rises.
As much as ADA moved towards its ATH, trade volumes remained about 50% lower than the previous surges. That shows that the network had lower participants.
Stay tuned for Cardano’s next moves.