ADA has exploited the cryptocurrency market rebound following Fed rate cuts last week. Since hitting a local low of $0.303 earlier this month, ADA has maintained an upward momentum.
Cardano price analysis: ADA price has experienced a sustained surge over the past week. This uptrend has been fueled by the broader cryptocurrency market rebound, which in turn was sparked by the Federal Reserve rate cuts last week.
From hitting a local low of $0.303 earlier this month, ADA has maintained an upward momentum. However, a closer inspection of the price action reveals a divergence between the price increase and the corresponding user activity, which has sparked both optimism and skepticism within the Cardano community in equal measures.
In his analysis, Martinez pointed out that the TD Sequential indicator has just flashed a sell signal on Cardano’s daily charts. The analyst posits that this suggests an upcoming correction, albeit for a short term.
This indication suggests a bearish reversal since the price increase is not supported by the corresponding increase in user activity, which indicates a weakening demand or reduced market interest. This divergence is concerning, especially in the context of retail traders being more susceptible to emotional decision-making, such as panic selling or FOMO, which in turn leads to higher price volatility.
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