Santiment, a leading analytics firm, has shed light on the latest market trends in the booming cryptocurrency industry. The firm’s data suggests that Cardano (ADA), a top cryptocurrency by market cap, currently exhibits a promising buying potential that slightly outweighs that of other prominent digital coins.
The current situation is based on the key market indicator known as The Relative Strength Index, (RSI). This technical gauge monitors the pace and the scale of recent shifts in the cost of any commodity. Considered a momentum oscillator, it’s commonly utilized to discern if an asset is possibly undervalued or overvalued at a given moment. The RSI registers its value on a spectrum that spans from zero to one hundred.
In the context of this scale, an RSI surpassing 70 hints towards an overbought asset that might soon undergo correction. Conversely, if the RSI falls below 30, it indicates a likely oversold state, and the price is expected to bounce back.
Santiment’s latest data breakdown revealed that Cardano has the lowest one-day RSI amongst the examined cryptocurrencies, hovering around 32.4. While this figure isn’t low enough to officially place Cardano in the underpriced category, it’s close enough to suggest that the digital currency could present a beneficial entry point for potential investors.
Interestingly, fellow cryptocurrencies aren’t trailing too far behind. Shiba Inu (SHIB), for instance, shows an RSI of 38.4, while both Bitcoin (BTC) and Ethereum (ETH) are modestly undervalued with their RSI figures circling in around the 41 mark. Dogecoin (DOGE), a popular memecoin, appears to maintain a neutral position with its RSI sitting just under 50. Toncoin (TON) seems to be the riskiest of the bunch, with its RSI currently at 55.1.
The market will be closely watching Cardano’s price trajectory from here on out, especially as the RSI has seemingly highlighted ADA as the most undervalued amongst major cryptocurrencies.
However, from a price perspective, Cardano is still struggling to bounce back from last month’s downturn. Attempts at revival haven’t been fruitful as the coin has continuously slipped back to stabilization around the $0.44 mark. In the past few weeks, Cardano’s trend has indicated a sideways movement, creating a sense of suspense for both current investors and prospective buyers.
 could be a potential investment opportunity, with a low RSI indicating undervaluation among leading cryptocurrencies.){kind=link}