8 May 2024
The analytics firm Santiment has revealed that Cardano (ADA) currently shows a slightly better buying opportunity than the other top coins.
Cardano May Be Showing A Good Buying Opportunity According To RSI
In a new post on X, Santiment discussed how the top assets in the cryptocurrency sector have been performing regarding the Relative Strength Index (RSI).
The RSI here refers to a technical analysis (TA) indicator that tracks the velocity and magnitude of recent changes in any given commodity’s price.
This momentum oscillator is generally used to judge whether an asset is overvalued or undervalued right now. The indicator displays its value on a scale that runs from zero to one hundred.
When the RSI is above 70, the corresponding asset may be considered overbought and due for correction. On the other hand, the metric being below 30 implies potential oversold status, with a probable price rebound.
Now, here is the chart shared by the analytics firm that shows the trend in the 1-day RSI for some of the top cryptocurrencies by market cap:
As the above graph shows, Cardano currently has the lowest 1-day RSI value out of these top cryptocurrencies at around 32.4. Although the asset isn’t yet inside the actual underpriced zone, this value that’s close enough could still suggest that ADA is providing a good entry point right now.
As Santiment points out, most of the top assets appear to provide a slight buying opportunity. Shiba Inu (SHIB) is currently the lowest one next to ADA, with an RSI value of 38.4.
Both Bitcoin (BTC) and Ethereum (ETH) have prices slightly undervalued to a similar degree, as their RSI values are around the 41 mark. Dogecoin (DOGE) is more or less neutral at the moment, as the metric is just under 50 for the memecoin.
Toncoin (TON) appears to be the riskiest buyout of these top assets if RSI is anything to go by, as the metric stands at 55.1 currently (note that the chart has wrongly marked TON as ETH, as Santiment has admitted in a reply to a user under the post). Nonetheless, this value is still quite close to the neutral level of 50.
It now remains to be seen how the Cardano price develops from here, given that the RSI has flagged it as perhaps the most undervalued of the top coins.
ADA Price
Cardano hasn’t been able to recover from last month’s crash so far. All attempts at a surge have failed, with the coin slumping back to consolidation around the current $0.44 level.