Dallas, Texas – The recent downturn in the cryptocurrency market, particularly affecting altcoins like THORChain [RUNE], Render Token [RNDR], and Cardano [ADA], has investors cautious. After reaching a peak market capitalization of $1.28 trillion in March, the market cap has now fallen below the $1 trillion mark, signaling a bearish phase.
Despite the market lows, there are indications of potential rebounds for select altcoins, as pointed out by key technical analysis from notable crypto analysts. For example, Sheldon The Sniper highlighted how Bitcoin’s Relative Strength Index (RSI) can identify potential buy zones for altcoins like THORChain [RUNE], Render Token [RNDR], and Cardano [ADA]. When Bitcoin’s RSI dips to certain levels, it often precedes rallies in these altcoins.
The decline in daily active addresses for Cardano [ADA], from 36,000 on June 24 to under 8,000 recently, indicates diminishing network activity that could impact the coin’s price negatively. Data also reveals a decrease in large-scale investors’ interest, with the number of transactions exceeding $100,000 dropping from 7,000 to 4,000, suggesting a potential withdrawal of investor interest.
The Open Interest for Cardano [ADA] has decreased by 2.74% in the past day to $203 million, but there has been a significant increase in Open Interest volume, which surged nearly 50% to $307 million, indicating mixed market signals. These downward trends in key metrics not only suggest a price decline but have also left about 74% of ADA holders at a loss, raising concerns about increased selling pressure.
The current market conditions present both challenges and opportunities for investors, with the need for careful analysis and strategic decision-making in navigating the volatile cryptocurrency landscape. As Bitcoin continues to trade at $60,746, with a 1.5% decrease in the last 24 hours, investors are advised to exercise caution and stay informed about the evolving market trends to make sound investment decisions.