Cardano (ADA) Breaks May Bearish Streak, But Major Twist Lies Ahead
Cardano (ADA) saw a very erratic price action this month with the price ranging from a low of $0.4261 to a high of $0.5089. While the digital currency’s performance for this month has been below par with some of the altcoins in the top 10, data from Cryptorank shows it has managed a 2.22% growth in the Month-to-Date (MTD) period.
Historical Cardano Precedence and Current Milestone
Per the data from Cryptorank, if Cardano ends the Friday trading session at the 2.2% growth to its current price of $0.452, it would have broken a prior 2-year slump. The coin ended May 2022 at a 17.5% slip, a loss that was compounded by the 5.6% drop it recorded in 2023. The 2% surge at the month shows a major deviation.
While this feat is yet to be priced in by the market, the challenges in June sends a crucial concern worth noting. Per the Cryptorank data, Cardano is historically bearish in the month of June. Since 2018 to date, ADA has only closed positive in June once when it rallied 11.9% in 2020.
In June 2018, the coin dropped by 38.5% while it also fell by over 7.4% in 2019. After the June 2020 bearish interruption, ADA continued on its bearish streak with 23.1% slump in 2021. June 2022, and 2023 saw the digital currency drop by 26.4% and 23.4% respectively.
Cardano has undergone a very visible evolution since 2018 to date, however, the evolution has not helped its price surge. One of this innovations is the introduction of smart contracts that has helped define its Decentralized Finance (DeFi) ecosystem. Per data from DeFiLlama, the Cardano DeFi market currently have a Total Value Locked (TVL) worth $319.98 million, relatively lower than its peers.
The Hopes for Recovery
For Cardano to regain its pace and thwart the negative trend for the month of June, a drastic change might be required. The condition to achieve this was hinted by top market analyst Alexander Legolas on X.
The last time $ADA got a STOCHASTIC RSI cross on the weekly chart, ADA pumped 72% from $0.47c to $0.81c
The time before that when we got a weekly Stochastic RSI cross ADA pumped 184% from $0.24c to 0.68c. Check both charts below
Moral to the lesson is we need a weekly… pic.twitter.com/LlyNroZNND
— Alexander Legolas (@ShillMoBaggins) May 31, 2024
According to Legolas, Cardano might need to secure a Stochastic RSI cross on the weekly chart. He pointed out that the last time this happened, ADA price jumped from $0.47 to %0.81, representing a 72% surge. This trend was also validated with another instance of a 184% slump when price moved from $0.24 to $0.68.
The analyst believes the Stochastic cross might be recorded soon as ADA remain oversold over the past 49 days. Amid this anticipation, Cardano founder Charles Hoskinson has continued to push for more innovations that can boost the utility of ADA.
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