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Selling pressure in the cryptocurrency market intensified over the weekend, widening weekly losses for major crypto assets.
This broader market downturn has affected many digital assets, and Cardano is no exception. Increasing selling pressure has caused the price of ADA to fall and a death cross signal has appeared on the short-term chart.
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A death cross occurs when a shorter-term moving average crosses below a longer-term moving average, signaling bearish momentum.
For Cardano, this pattern is evident on the 4-hourly chart, where the 50-period moving average is below the 200-period moving average. This crossover is traditionally considered a bearish signal, suggesting that the cryptocurrency may decline further.
What will happen to ADA price in the future?
At the time of writing, ADA has fallen 3.42% in the past 24 hours to $0.3585 and is down 13% for the week. Cardano has declined significantly since hitting a high of $0.43 on July 27. Since that date, ADA has recorded losses in 5 out of 7 days.
Market analysts are closely monitoring key support levels to assess the possibility of ADA’s price recovery. Other important technical indicators will also be monitored to determine Cardano’s price movement.
The next few days may be crucial in determining whether ADA can stabilise and recover or if the bearish trend will continue.
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According to Santiment, history points to the probability of a rebound for ADA, with its 7-day average trader return hitting a new low. In a tweet, Santiment wrote: “The crypto market has fully reversed, with traders seeking BTC below $50,000 again. However, history shows that when the 7-day average trader return for top caps like BTC, ETH, ADA, XRP, DOGE, LINK etc. is this low, the probability of a rebound increases significantly.”
ADA’s relief-led rally could target the 50-day SMA of $0.397 and above it at $0.43. A sustained breakout above the 200-day SMA of $0.50 could signal Cardano’s launch of a bullish comeback and break out of the current trading range.
On the other hand, if the decline continues, Cardano might test for the next support in the $0.31 to $0.33 range.
https://u.today/cardano-ada-faces-death-cross-amid-market-sell-off
