Cardano, AVAX and LUNA enter the extreme oversold zone, here’s what it means for the market:
Numerous altcoins are now oversold as the majority of the crypto market maintains selling pressure
With the aggravating correction in the cryptocurrency market, altcoins such as AVAX, LUNA and Cardano faced strong selling pressure that pushed their price further downwards. At the same time, assets in the market could lose room for yet another drop, according to the Relative Strength Index indicator.
Cardano’s RSI hits new lows
The relative strength index on Cardano has recently fallen below the value of 30, which is considered entry into the extremely oversold zone. At the time of writing, the Relative Strength Index shows values of 27 for Cardano, suggesting the asset has hit the local bottom.
Source: Trading Display
In terms of price action, ADA is trading at $0.7, which is the lowest point the coin has reached in the past year. The last time the market observed its Ethereum counterpart around the same price zone was February 2021.
AVAX and LUNA performance
While Cardano is far from making a decent recovery in the market, AVAX and LUNA show more discreet performance as both cryptocurrencies trade above key support points like the 200-day moving average.
But at the same time, both assets have fallen by at least 11% in the last 24 hours due to the general trend in the cryptocurrency market. As for the RSI on both assets, the indicator is now moving around 48 which is the average value for an asset moving within the range.
On more short-term charts, such as the four o’clock and the one o’clock, the RSI has already entered the oversold zone, indicating that markets will most likely recover in the near term if inflows appear again.
At the time of writing, AVAX and LUNA are trading at $66.8 and $52 respectively.