Cardano (CRYPTO:ADA) closed September with its first positive result in six years, suggesting a possible rebound in October.
What happened
According to ZyCrypto, on Tuesday, analyst “Plutus Staking” shared on X a number of metrics and historical patterns that point to a positive outlook for ADA. The analyst highlighted that Cardano closed September with a risk level of 0.31 and a price of $0.37, compared to the risk level of $0.29 and $0.34 in August.
Today we’re going to talk about #Cardano and its native token $ADA
1. Risk levels 🔮
ADA closed September with a 0.31 risk level and a price of 37c.
The August monthly close was 0.29 risk level and 34c.
We are still in DCA territory 💰 pic.twitter.com/7ARCFWstfB
— Plutus Staking (@PlutusPool) October 1, 2024
Furthermore, Cardano’s total value locked (TVL) increased slightly from 562 million to 579 million ADA, and the top 10 Cardano decentralized applications (dApps) showed positive growth from the previous month. This would indicate a healthy development of the ecosystem.
The analyst also expressed optimism for the coming months, citing historical patterns and possible catalysts. “ADA has had its first green September on record,” he tweeted.
5. monthly returns $ADA has just had its first green September on record!
I’ll put the $BTC monthly returns next to it as a comparison to what we might be able to accomplish in the coming months with looser monetary policy starting to take place😏 pic.twitter.com/XsLLe2WNOB
— Plutus Staking (@PlutusPool) October 1, 2024
However, despite the strong performance in September, ADA continues to face challenges, especially in staying above crucial resistance levels.
You can also read: Puig shares receive a buy recommendation: Why is Jefferies optimistic?
Why is it important
The positive September performance for Cardano comes at a crucial time as the ecosystem prepares for the Chang Hard Fork. This event is seen as a potential catalyst to inject new life into the Cryptocurrency. However, despite the community’s hopes, ADA trading volume has been low, reaching one of its lowest levels of the year in August.
Furthermore, Cardano has faced pressure in the market, as its founder, Charles Hoskinsonprepares the unveiling of a new roadmap in Buenos Aires, Argentina. This announcement could influence market sentiment and help ADA regain ground.
Despite the recent drops in price, some analysts believe that ADA price could recover if it manages to break through key resistance levels. However, others warn of possible severe declines as Cardano could face increased selling pressure.
Cardano price movement
At press time, ADA was trading at $0.3587, reflecting a drop of 6.46% in the last 24 hours.
You can also read: BBVA shares fall after adjustment in offer for Sabadell: purchasing opportunity?
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