- Analytics firm Santiment has identified Cardano (ADA) as a potentially good buying opportunity, based on its Relative Strength Index (RSI).
- The RSI, a momentum oscillator used to judge whether an asset is overvalued or undervalued, shows Cardano with the lowest 1-day RSI value among top cryptocurrencies.
- Despite not being in the undervalued zone, ADA’s RSI value suggests a possible entry point for investors.
Cardano (ADA) is currently showing a potentially good buying opportunity, according to analytics firm Santiment’s analysis of the Relative Strength Index (RSI).
Cardano May Be Showing A Good Buying Opportunity According To RSI
In a recent post, Santiment discussed the performance of top assets in the cryptocurrency sector in relation to the Relative Strength Index (RSI). The RSI is a technical analysis indicator that tracks the velocity and magnitude of recent changes in a commodity’s price. This momentum oscillator is generally used to judge whether an asset is overvalued or undervalued.
RSI Values of Top Cryptocurrencies
The RSI displays its value on a scale from zero to one hundred. An RSI above 70 suggests that the asset may be overbought and due for correction, while an RSI below 30 implies potential oversold status, with a probable price rebound. According to the chart shared by Santiment, Cardano currently has the lowest 1-day RSI value out of the top cryptocurrencies at around 32.4. This value, although not in the actual underpriced zone, could suggest that ADA is providing a good entry point for investors.
ADA Price
Cardano has yet to recover from last month’s crash. All attempts at a surge have failed, with the coin slumping back to consolidation around the current $0.44 level. The price of the asset appears to have been stuck in sideways movement over the last few weeks.
Conclusion
While the RSI suggests a potential buying opportunity for Cardano, investors should conduct their own research and consider the inherent risks before making any investment decisions. The future price development of Cardano remains to be seen.
