Cardano Surges 5% as Market Oversold Altcoin Shows Recovery Signs

Cardano, a leading layer-one blockchain, is showing signs of recovery after weeks of sluggish price action. The cryptocurrency's price surged 5% to $0.6924, outpacing the broader crypto market, which is up 2%. This comes after ADA was down 0.5% in the past week and 12.5% in the past month, suggesting that the market may have oversold the altcoin. The recent bounce could mark a key turning point, as ADA appears to have found its floor and is now gaining momentum for a stronger recovery phase.

Cardano's one-day chart indicates that it hit a bottom a few days ago and has begun a strong rebound. Its relative strength index (RSI) bottomed at 30 late last week and has now risen to 50, signaling increased buying pressure. Additionally, ADA’s 30-day average fell below the 200-day average but has now flattened and looks ready to begin an ascent. This suggests that Cardano had reached a point where it was selling at such a discount that buyers began piling in again, and it still remains in an oversold position.

Despite the recent gains, ADA remains 77.5% below its all-time high (ATH) of $3.09, which it set back in September 2021. This significant discount provides ample room for growth, and with the wider market also waking up after several months of stagnation, it could rise towards $1 by the end of July. However, it should be noted that for a top-ten cryptocurrency, ADA’s 24-hour trading volume is relatively low, signaling Cardano’s difficulties in attracting a wider base of investors. Its platform still has a total value locked (TVL) of only $330 million.

Developers are planning a series of privacy and scalability updates for the platform over the course of the summer and autumn, collected under the ‘Midnight’ banner. Assuming that Midnight facilitates the kind of adoption that some have predicted, it could be very positive for the Cardano price, which could hit $3 in Q4. According to the analyst's forecast, if Midnight is successful, it could be the single biggest economic event in the history of Cardano. This series of upgrades could boost Cardano's fundamentals significantly, making the long-term Cardano price prediction increasingly bullish.

For traders who find Cardano a bit too frustrating, diversifying into newer altcoins could be an alternative. Picking the most promising new alts is tricky, but one way of gauging potential is to look for the most successful presales, since these can indicate momentum. One such coin is Solaxy (SOLX), a layer-two project that has raised an incredible $46.4 million in its ICO. Its sale will end in only six days, so traders will have to hurry if they want to join the thousands of investors who’ve betted big on Solaxy’s future. Solaxy is planning to launch a layer-two network for Solana, providing users with lower transaction fees and faster confirmation times, among other features. Such features are all part of its plan to become a key part of the Solana ecosystem, with a particular focus on meme tokens and DeFi. As its native token, SOLX will be necessary to pay for its transaction fees, so demand for the token could be huge. Latecomers can join its sale at the Solaxy website, where the token is selling at its final presale price of $0.00175.