Bitcoin saw slight gains on Thursday, bouncing back to $68k from a weekly low of $66,300 on October 23. This correction caused a sell-off in altcoins, with Cardano (ADA) notably standing out as one of the biggest losers in the midweek session. Bullish investors faced another setback in their quest to reach the psychological target of $0.40.
According to TradingView’s 4-hour chart, ADA fell below its short-term moving averages on October 23 after failing to maintain a breakout above the $0.37 channel ceiling.
Despite most altcoins rallying alongside Bitcoin, ADA encountered selling pressure during its recovery attempt on Thursday, signaling a different trend.
A broader view of the 4-hour chart showed that the 50-day and 100-day moving averages were stable, indicating minimal volatility and market uncertainty during the current range of the altcoin.
Furthermore, the daily RSI reading, which has remained near the midpoint throughout October, highlighted the lack of a clear upward or downward trend to attract market participants.
Post-Chang Phase 1 Onchain Activity
Data from CExplorer’s onchain analysis indicated a decrease in active accounts and total transactions since the activation of the Chang hard fork on September 2.
Despite the assumption that technical milestones usually lead to increased participation, the decline in on-chain activity mirrored wider market trends. The crypto market’s growth has been stifled for a large part of the year, discouraging new entrants, despite advancements in the altcoin’s ecosystem.
ADA/USDT Technical Review
Cardano’s native token, ADA, has been trading within a narrow range of $0.33 to $0.36 since the beginning of the month. Despite being locked in this range, the significance of its recent higher high since mid-July should not be overlooked.
Currently, bulls are aiming to surpass the $0.37 resistance level, potentially triggering further bullish momentum and setting sights on the $0.41 price point.
A breach below the lower limit will prompt a test of the crucial support at $0.31, which was last tested on September 6.