Many analysts project the return of altcoin season

Analysts are indicating a potential altcoin season return, particularly noting Cardano (ADA) showing a significant rebound. At press time, ADA’s price increased by 1.91% in 24 hours, reaching $0.7288, suggesting the start of a possible upward trend. The technical indicators for ADA signal cautious optimism for traders.

Threat of Cardano death cross

Cardano has experienced notable volatility, trading between a low of $0.5821 and a high of $1.134 in recent weeks. This price fluctuation positions Cardano as a candidate for a death cross. The ADA/USD chart reveals a divergence between the 90-day and 200-day Simple Moving Average (SMA). A death cross typically occurs when the 90-day average falls below the 200-day average. Currently, the ADA chart shows increasing divergence amid the ongoing rally.

Additionally, on-chain metrics suggest a renewed bullish momentum for Cardano, with a significant 47% increase in trading volume, reaching $754.76 million in 24 hours. This surge in interest implies the potential fading of the death cross indicator.

Is altcoin returning?

Cardano’s resurgence is mirrored in other altcoins, notably XRP, which has also shown a bullish reversal alongside increased trading volume. These developments have sparked discussions about the possibility of an altcoin season resurgence.

However, correlations with Bitcoin could introduce further volatility ahead. Macroeconomic factors, including the Federal Reserve’s interest rate policies, continue to impact Bitcoin’s price. With ongoing inflation concerns, Fed shifts may affect BTC, consequently influencing market sentiment and potential altcoin rallies.