- While ADA’s price decreased in the last seven days, MATIC registered a slight increase.
- Defending the $0.44 support could send ADA toward $0.48.
- The CMF and AO readings suggested that MATIC might decline to $0.64.
Like many cryptocurrencies in the market, altcoins prices like that of Cardano (ADA) and Polygon (MATIC), have failed to make significant upticks. For many participants, this calls for worry considering that there have been talks about an “altcoin season.” But it has not come to life.
For those unfamiliar, altcoins season occurs when Bitcoin’s (BTC) dominance drops and the price of other cryptocurrencies outperforms BTC for some months. However, on average, we’ve not seen that happen this cycle.
Looking at the price of ADA, CoinMarketCap showed that it decreased by 8.10% in the last seven days. MATIC, on the other hand, only managed a 1.92% increase within the same period. Despite the underwhelming performances, Coin Edition assesses whether it is a good time to buy the tokens.
Cardano (ADA)
ADA’s price at press time was $0.45. However, the downtrend on the 4-hour chart showed that sellers could be getting exhausted. If this is the case, the price of ADA might bounce, and surpassing the $0.48 resistance could be its first aim.
Bulls must ensure that the price stays above the $0.44 underlying support to achieve this. If it does, then Cardano might plunge to $0.40. Despite the bullish potential, the Supertrend flashed a sell signal around $0.48.
ADA/USD 4-Hour Chart (Source: TradingView)
Therefore, a price rise might not validate a rally for ADA. Meanwhile, the Relative Strength Index (RSI) revealed that ADA was oversold. As such, the price could bounce soon. But increasing to $0.50 might be a stretch in the short term.
Polygon (MATIC)
Signals from the 4-hour MATIC/USD chart showed that the momentum was bearish. This was evident from the Awesome Oscillator (AO). At press time, the AO was in negative territory, indicating an increasing downward momentum.
If this trend continues, MATIC’s price might fall to $0.64 which was the underlying area of interest. Furthermore, the Chaikin Money Flow (CMF) dropped to the red area, indicating that MATIC had been deprived of liquidity.
ADA/USD 4-Hour Chart (Source: TradingView)
A combination of both indicators points to a decline. To arrest the potential drawdown, bulls must act fast and protect the $0.69 support. If this does not happen, validation of the decrease to $0.64 might be unavoidable.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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