- Cardano (ADA) broke a two-year bearish streak with a 2.22% growth in May but faces historical challenges in June, having only closed positively once since 2018.
- Top analyst Alexander Legolas predicts a potential rally if ADA secures a Stochastic RSI cross, which could signal a significant price surge.
Cardano (ADA) has finally broken free from its prolonged bearish trend this May, showcasing a glimmer of hope for its holders. However, the road ahead in June is laden with historical challenges that might put this newfound momentum to the test.
Historical Cardano Precedence and Current Milestone
Cardano’s performance this month has been notably erratic, with its price fluctuating between $0.4261 and $0.5089. Despite the volatile price action, data from Cryptorank reveals that Cardano managed a 2.22% growth in the Month-to-Date (MTD) period, a significant achievement considering the broader market trends.
If Cardano closes the Friday trading session at a 2.2% growth from its current price of $0.452, it will have broken a two-year slump. In May 2022, ADA experienced a severe 17.5% drop, followed by a 5.6% decline in 2023. The current 2% surge marks a significant deviation from its usual bearish performance.
While this positive trend is a breath of fresh air for Cardano enthusiasts, June presents a different story. Historically, ADA has struggled in June, closing the month positively only once since 2018. That lone positive performance was in 2020, when ADA rallied 11.9%. In contrast, the coin suffered substantial declines in June 2018 (38.5%), 2019 (7.4%), 2021 (23.1%), 2022 (26.4%), and 2023 (23.4%).
Despite its continuous evolution since 2018, including the significant introduction of smart contracts that bolstered its Decentralized Finance (DeFi) ecosystem, Cardano’s price surge remains elusive. According to DeFiLlama, the Total Value Locked (TVL) in Cardano’s DeFi market stands at $319.98 million, significantly lower than its competitors.
The Hopes for Recovery
The last time $ADA got a STOCHASTIC RSI cross on the weekly chart, ADA pumped 72% from $0.47c to $0.81c
— Alexander Legolas (@ShillMoBaggins) May 31, 2024
The time before that when we got a weekly Stochastic RSI cross ADA pumped 184% from $0.24c to 0.68c. Check both charts below 👇🏾
Moral to the lesson is we need a weekly… pic.twitter.com/LlyNroZNND
To break this negative trend in June, Cardano might need a drastic change. Top market analyst Alexander Legolas, on social media platform X, hinted at a crucial technical condition that could propel ADA’s price upwards. According to Legolas, securing a Stochastic RSI cross on the weekly chart could be the key. He noted that the last time this happened, ADA’s price jumped from $0.47 to $0.81, marking a 72% surge. Another instance saw a 184% rise when the price moved from $0.24 to $0.68.
Legolas believes that ADA, being oversold for the past 49 days, might soon record this Stochastic cross, igniting a potential rally. Amidst this anticipation, Cardano’s founder, Charles Hoskinson, continues to advocate for innovations that could boost ADA’s utility and market position.
While Cardano’s break from its May bearish streak is a positive sign, its performance in June will be crucial. Overcoming its historical struggles in the upcoming month could set a new precedent and instill renewed confidence among its supporters.