The allure of quick gains and easy profits has drawn many into the world of memecoins. However, the constant influx of new tokens has led to numerous rug pulls, with CAR and LIBRA being the latest examples that have shaken trader confidence. These memecoins have been draining liquidity from established tokens like Dogecoin, Shiba Inu, and Pepe.
Despite this, there has been a noticeable shift in market sentiment, with a renewed focus on fundamentals. Tokens like Cardano and Aave, once considered dead, are now garnering significant attention. Here’s what to expect from these tokens moving forward.
Cardano (ADA) Price Analysis
After reaching highs above $1.2, Cardano’s price has been trading within a bearish descending channel. The token has bounced off the lower channel support and is now approaching the average bands. A breakout above this range could push the price towards the resistance level above $1, potentially sparking a bull run to new highs.
There are promising signs for Cardano, including a rising RSI and bullish Ichimoku clouds. The convergence of the conversion line and baseline, along with incremental RSI, indicates that bulls are regaining control of the rally. If this momentum continues, we could see ADA surpass $0.86 and potentially break through $0.9, a key level it has struggled to sustain in the past.
Aave (AAVE) Price Analysis
Following a parabolic recovery from its lows after hitting an all-time high above $660, Aave’s price is now aiming to break through the crucial resistance zone between $400 and $430. Despite previous attempts to rise above $400 being thwarted by bearish activity, a strong rebound suggests a potential breakthrough is on the horizon.
The weekly chart for Aave shows a bullish crossover between the 50-day and 200-day MA levels, signaling a potential uptrend. The price rebounding from a parabolic curve, coupled with a recovering RSI, could pave the way for Aave to surge above $700 and reach new highs.
