Cardano (ADA), Dogecoin (DOGE), and Rexas Finance (RXS): A Market Diversification Tale

Cardano ADA is on the rise as it approaches the potential price of $3.10, which is good news for its customers. But many traders are now diversifying

Cardano (ADA) price opened the new week on a positive note, showing signs of recovery from last week's downturn. At press time, ADA price is seen trading 6.5% higher at $0.97, aiming to capitalize on the bullish momentum as it attempts to regain the crucial level of $1.10.

After marking significant losses last Monday, ADA price experienced a downturn, dropping from highs of $1.20. The bearish momentum pushed ADA price down to lows of $0.86, collecting over 23% in losses. However, buying pressure emerged around this lower support zone, helping ADA price begin its recovery.

As ADA price attempts to reclaim the $1.10 level, traders can expect to see some resistance forming at this level. Notably, ADA price encountered strong resistance at $1.10 last week, which led to the sharp drop from highs of $1.20. Hence, breaking above this resistance could be crucial for ADA bulls.

In any case, ADA price is also seen reacting to the broader market weakness, which is impacting the cryptocurrency market. The total crypto market capitalization dropped below the crucial support of $400 billion, aiming to collect bids from a lower zone.

On the other hand, the total crypto market volume surged by more than 10%, aiming to capitalize on the strong buying activity seen in the lower time frame. Notably, the total crypto market volume surged significantly last week as well, indicating heightened trading activity from both sides.

Meanwhile, a look at the one-day chart of ADA reveals that the price is attempting to form a bullish engulfing pattern from last Monday's losses. Notably, ADA price opened the past week on a bullish note, rising from lows of $1.10 to highs of $1.20. However, selling pressure emerged around these highs, leading to a sharp drop from Monday's highs.

Now, if ADA price manages to close the price action of this week with gains, it could confirm the bullish engulfing pattern from last Monday's losses. Such a confirmation could lead to further gains for ADA bulls in the coming week.