Analytics firm Santiment has revealed that Cardano (ADA) currently presents a slightly better buying opportunity than other major coins.
Cardano could show a good buying opportunity according to RSI
In a new job on 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 given commodity.
This momentum oscillator is generally used to judge whether an asset is currently overvalued or undervalued. The indicator displays its value on a scale from zero to one hundred.
When the RSI is above 70, the corresponding asset may be considered overbought and should be corrected. On the other hand, an indicator below 30 implies potential oversold status, with a likely price rebound.
Now here is the chart shared by the analytics company that shows the 1-day RSI trend for some of the top cryptocurrencies by market cap:
The data for the 1-day RSI across some of the top coins in the sector | Source: Santiment on X
As seen in the chart above, Cardano currently has the lowest 1-day RSI value among these top cryptocurrencies at around 32.4. Although the asset is not yet inside the undervalued zone, this close enough value could still suggest that ADA currently provides a good entry point.
As Santiment points out, most major assets appear to offer a slight buying opportunity. Shiba Inu (SHIB) is currently the lowest after ADA, with an RSI value of 38.4.
Bitcoin (BTC) and Ethereum (ETH) are both slightly undervalued in price to a similar degree, as their RSI values sit around 41. Dogecoin (DOGE) is more or less neutral at the moment, as the metric is just below 50 for memecoin.
Toncoin (TON) appears to be the riskiest buyout of these major assets if the RSI is to be believed, as the metric currently stands at 55.1 (note that the chart incorrectly marked TON as ETH, as did Santiment admitted as much in a response to a user below the post). This value nevertheless remains quite close to the neutral level of 50.
It now remains to be seen how the price of Cardano will move from here on, given that the RSI has flagged it as perhaps the most undervalued of the major coins.
ADA Price
Cardano has yet to recover from last month's crash. All upward attempts failed, with the coin collapsing to consolidate around 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
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