Cardano’s 15% Rally Stumbles: Are We Seeing a Correction?

Cardano’s recent price surge has captured attention, pushing the cryptocurrency up by 15%. However, two key indicators are suggesting a potential shift in momentum, raising concerns about a price correction.

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The first indicator is the Relative Strength Index (RSI), which currently sits above 70. This suggests that Cardano is in overbought territory, meaning the price has risen too quickly in a short period. Historically, this level often precedes a period of price consolidation or even a pullback.

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The second indicator is the MACD (Moving Average Convergence Divergence), which has recently crossed below the signal line. This bearish signal, when coupled with the overbought RSI, strengthens the argument for a potential short-term price correction.

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While these indicators don’t guarantee a drop in Cardano’s price, they do suggest that the current upward trend might be facing some headwinds. Investors should remain cautious and watch for further developments, particularly regarding the overall market sentiment and the strength of future price action.