Crypto analyst and trader Benjamin Cowen says buying pressure for Cardano has fallen massively since ADA was in September All time high has printed.
In a new strategy session, Cowen takes a look at the state of Cardano as ADA continues a downtrend that puts the coin nearly 60% below its record high of over $ 3.00.
The analyst provides the relative strengthindex Spotlight (RSI) from ADA, a momentum indicator that traders use to measure whether an asset is overbought and in need of correction or is oversold and awaiting an upturn.
On the weekly timeframe, Cowen says Cardano’s RSI suggests it is the seventh largest crypto after Market capitalization is clearly oversold.
“ADA seems to be extremely oversold from many different perspectives in my opinion. One of the things we can look at … is the Relative Strength Index of ADA … The interesting thing is that the Relative Strength Index for ADA was that low at about 37 the last time, the last time in March 2020 .
That’s not to say that this decline was anywhere near as bad as what we saw then … but what it shows is that ADA has been selling broadly on the weekly timeframe that ADA’s relative strength index is the same as it was in March 2020, and also note that we are nearing the lower end of the range. “
Approaching Cardano’s daily RSI, Cowen says ADA is sitting at levels since the deep local lows in the 2020 pandemic crash and the correction was not seen again in September of that year.
“You can see that we are also close to historic lows. That doesn’t mean we can’t go under anymore. I’m not saying that, but the level we’ve just hit isn’t far from the lows we’ve seen in the past in March 2020 and then in September 2020. “
The analyst says that ADA’s current correction will be remembered for the long term as one of the many sideways markets that preceded the bull runs.
“Let’s see if the theory holds that the cycles for Bitcoin Should extend … If this also extends, then the probability is high that this will only be seen as a long accumulation phase for ADA in the future. “
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Source: Crypto News Deutsch