Strong Uptober for Cardano Envisioned as September Posts First Positive Close in 6 Years
Despite enjoying a significant rally between September 15 and 27 that brought Cardano (ADA) up to $0.41, the crypto asset encountered a sharp recoil, extending losses into the new month.
Notably, ADA has generally displayed limited volatility over the past few months, with price movements primarily trending sideways. Nevertheless, analysts are now forecasting a possible rebound, emphasizing that we are entering a historically bullish quarter for the cryptocurrency market.
On Tuesday, analyst Plutus Staking shared an extensive thread on X, outlining various metrics and historical patterns that suggest a positive outlook for ADA.
The analyst noted that Cardano closed September with a 0.31 risk level and a price of 37 cents, compared to Augusts 0.29 risk level and 34 cents. According to him, these risk levels have historically provided excellent entry points for investors, with the pundit suggesting a strategy of dollar-cost averaging (DCA) in under 0.5 Risk and out above 0.5 Risk.
The analysis also pointed out that ADAs dominance remains stable at 0.6%, with a structure similar to the previous market cycle. This observation, coupled with the fact that most wallet address categories are trending upwards, signals continued growth and decentralization in the Cardano ecosystem.
One of the most significant points highlighted by the pundit was the increase in Total Value Locked (TVL) for Cardano, which rose slightly from 562M to 579M ADA. Moreover, the top 10 Cardano decentralized applications (dApps) all showed positive growth from the previous month, indicating a healthy ecosystem development.
The analyst further expressed optimism for the coming months, citing historical patterns and potential catalysts.
As we gear up to enter the penultimate leg of the Bull market, I expect these to start trending up in the coming months as looser monetary policy hits all global markets. He wrote.
That said, the pundit further stressed how ADA achieved its first green September on record, a milestone that suggests further upside potential despite recent setbacks.
ADA has just had its first green September on record! he tweeted. While August closed similarly to the previous cycle, September has shown growth. Given the current rate cut and liquidity cycle, I believe this consolidation phase will lead to a significant upward movement.
However, despite a solid performance in September, ADA continues encountering challenges, particularly in maintaining support above crucial resistance levels. Analyst Trend Rider underscored the significance of ADA closing above its 21-week exponential moving average (EMA), currently positioned at $0.40.
To achieve a fully bullish outlook, ADA must close above the 21-week EMA, he emphasized. With Bitcoin holding steady above its EMA, its only a matter of time before ADA follows suitprovided Bitcoin keeps its momentum.
At press time, ADA was trading at $0.3514, reflecting a 7.81% drop over the past 24 hours.
Text source: ZyCrypto
