Cardano (ADA) Deeply Oversold per This Indicator; Rebound Imminent?

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Cardano (ADA) Deeply Oversold per This Indicator; Rebound Imminent？

Cardano (ADA), the 10th-largest cryptocurrency by market capitalization, continues to struggle amid broader market weakness and investor caution, trading near lows of $0.52 last seen in early April.

Cardano was trading down 7.85% in the last 24 hours to $0.5478 at the time of writing as part of a broader crypto sell-off that saw $1.01 billion in liquidations due to renewed market volatility.

Cardano has slowly declined since its June 11 high of $0.736, with 11 out of 12 days in the negative, including todays drop.

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The slump has lasted six straight days since June 16, reaching an intraday low of $0.56, with chart signals now suggesting an imminent rebound.

Cardano flashes an oversold signal

According to the Relative Strength Index (RSI) indicator on the daily chart, ADA might have reached a deeply oversold territory, with the RSI falling below the typical 30 threshold to just 23, a level that has historically signaled a probable reversal.

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The RSI is a momentum oscillator that measures the speed and change of price movements. A reading below 30 typically indicates that an asset is oversold, implying that selling pressure has been overextended and a bounce might be imminent. Cardanos current RSI of 23 implies that the bearish momentum might be about to fade.

Technical traders frequently pay attention to low RSI levels, seeing oversold conditions as a potential setup for a relief rally or perhaps a trend reversal.

Cardano news

Ford is supporting Iagon and Cloud Court on their Cardano-based legal data storage proof-of-concept.

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The recent launch of a new proof-of-concept initiative, including decentralized storage platform Iagon, legal tech firm Cloud Court and Ford Motor Company, highlights institutional interest in the Cardano ecosystem.

The pilot project intends to determine the feasibility of merging Cardano‘s blockchain technology with Iagon’s decentralized cloud storage to allow secure legal data management.

The Cardano Blueprint, the knowledge base for an easier understanding of the Cardano blockchain, has been unveiled by Input Output. In another milestone, the Cardano network surpassed 110 million transactions, reaching 110.63 million.