ADA, XRP rallies come to a pause – Best moment to dive in?
- XRP and Cardano see a pause in their rallies.
- RSI remains below the neutral lines.
XRP and Cardano [ADA] experienced a surge in the broader altcoin market following the approval of the spot Bitcoin ETF. However, the recent slowdown in the rally prompts the question: is now an opportune moment to consider investing in these altcoins?
A pause in rally for Cardano and XRP
Analyzing Cardano’s daily timeframe chart showed a recent shift from downtrends to an upward rally that started on 8th January. This upward movement briefly paused on 9th January but continued in the following days.
It trended upwards on 10th and 11th January, coinciding with the announcement and the first trading day of the spot Bitcoin ETF, respectively.
On 10th January, ADA saw a notable increase of around 10.5%, marking its most significant gain so far this year.
Source: Trading View
However, in the past 24 hours, it experienced a decline of over 6%. As of this writing, it struggled to recover, showing less than a 1% price increase and trading around $0.55.
ADA’s Relative Strength Index (RSI) was below the neutral line, indicating a continued bearish trend.
Similarly, an examination of XRP’s chart showed a rally akin to Cardano’s. It saw a significant price rise on the day of the ETF approval announcement on 10th January.
Following this rise, XRP experienced a decline of over 5% by the end of 12th January, bringing its price from over $0.6 to the $0.5 range.
As of this writing, XRP was trading at around $0.57, with a slight increase of around 1%. The RSI for XRP also remained below the neutral line, signaling a persisting bearish trend in line with ADA.
Source: Trading View
Analyzing the Cardano and XRP funding rates
According to Coinglass data, there has been a lack of substantial movement in the funding rates of both Cardano and XRP in recent times.
The most notable shift in funding rates for either asset was around 3rd January, coinciding with a flash crash in the market. As of this writing, the funding rate for ADA was about 0.011%, while XRP’s funding rate was around 0.009%.
This data implies that long positions continue to dominate, but traders are adopting a less aggressive stance in taking these positions.
The subdued movement in funding rates suggests a degree of caution or restraint among market participants.
A good time to buy?
The observed price trends in Cardano and XRP suggest the possibility of further increases in the upcoming weeks and months.
Additionally, the positioning of the RSI below the neutral line showed that the bull trend has yet to be initiated.
How much are 1,10,100 XRPs worth today
Considering these factors, purchasing these assets might prove advantageous, potentially yielding a return once the anticipated bull trend begins.
Investors may find strategic opportunities in the current market conditions with the expectation of capitalizing on potential upward movements.
