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Cardano’s (ADA) price has recorded over 8% growth in the past seven days as it makes another attempt at the $1 target. Technical indicators suggest that ADA might be undervalued as the current market price is trading below the signals from the asset’s Bollinger Bands.
According to data, Cardano’s upper Bollinger Band is at $0.8739, which falls within the $0.90 range.
This suggests that if ecosystem bulls are not taking profits, the price could reverse and hit this level, potentially reaching the psychological $1 target. The asset’s volume is in the green zone for a bullish rally, but market conditions have kept ADA down.
Notably, large holders within the community have slowed down their purchases despite their recent accumulation frenzy. This sent mixed signals to the market, breaking the bullish momentum ADA posted within the last seven days.
With the Relative Strength Index (RSI) of Cardano at 49.64, a neutral range, there is still room for more purchase. If investors shun profit-taking, their action could support an upward movement as the Bollinger Bands indicate.
The pullback seen on Cardano was likely triggered by the uncertainty around the exchange-traded fund (ETF) delay. The U.S. Securities and Exchange Commission (SEC) recently pushed deciding on Grayscale’s ADA ETF to Oct. 26. The move caused a drop in Polymarket odds from 95% to 8%.
Although the SEC might still go ahead to approve, some segments of the market have started offloading their holdings of the asset. This has affected Cardano’s price outlook in the crypto market. As of this writing, ADA changes hands at $0.8460, which represents a 1.43% decline in the last 24 hours.
The asset slipped from its peak of $0.891 to its current level. However, the trading volume remains up by 4.55% at $1.4 billion.
Despite the SEC’s push for possible approval of the spot Cardano ETF to Oct. 26, some market participants are counting down the days. They believe that a positive decision could serve as a catalyst to break the $1 resistance barrier and set ADA on an upward trajectory as it gains institutional attention.
Recently, NEAR Protocol, an artificial intelligence (AI)-powered blockchain, collaborated with Cardano. The partnership, which has been hailed as the future of crypto, aims to ensure that users carry out seamless cross-chain transactions without worrying about the minute steps involved.
