Analytics firm Santiment reports that Cardano (ADA) currently presents slightly better buying opportunities than other top coins.
Cardano May Show Good Buying Opportunity According to RSI
new post In X, Santiment discussed how the top assets in the cryptocurrency sector have performed in relation to their Relative Strength Index (RSI).
RSI here refers to a technical analysis (TA) indicator that tracks the speed and magnitude of recent changes in the price of a specific commodity.
This momentum oscillator is commonly used to determine whether an asset is currently overvalued or undervalued. The indicator displays values on a scale from 0 to 100.
If RSI exceeds 70, the asset is considered overbought and may require a correction. On the other hand, if the indicator is below 30, it indicates a potential oversold condition with the possibility of a price rebound.
Now, here is a chart shared by the analytics firm showing the 1-day RSI trend for some of the top cryptocurrencies by market capitalization.
The data for the 1-day RSI across some of the top coins in the sector | Source: Santiment on X
As you can see in the graph above, Cardano currently has the lowest 1-day RSI value among the top cryptocurrencies at around 32.4. Although the asset is not yet within real undervalued territory, this value is close enough to still suggest that ADA currently offers a good entry point.
As Santiment points out, most top assets appear to offer some buying opportunities. Shiba Inu (SHIB) currently has the lowest RSI value of 38.4, next to ADA.
Both Bitcoin (BTC) and Ethereum (ETH) are slightly undervalued to a similar degree, as their RSI values are around 41. Dogecoin (DOGE) is currently somewhat neutral as memecoin’s indicator is below 50.
Toncoin (TON) appears to be the riskiest buy among these top assets, as its RSI is currently at 55.1. As Santiment admits in his answer, the chart incorrectly shows TON as ETH. user under the post). Nonetheless, this value is still very close to the neutral level of 50.
It remains to be seen how the Cardano price develops from here, given that RSI now marks Cardano as the most undervalued coin among the top coins.
ADA price
Cardano has so far not recovered from the crash that occurred last month. All surge attempts failed and the coin has re-consolidated to the current $0.44 level.
The price of the asset appears to have been stuck in sideways movement over the last few weeks | Source: ADAUSD on TradingView
Featured image by Michael Förtsch on Unsplash.com, Santiment.net, chart by TradingView.com
Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.