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| Cardano (ADA) |
Price Drops from $1.19 to $0.64, Raising Concerns of Further Decline
Cardano (ADA) is showing increased bearish signals as it potentially forms its first death cross of 2025. A death cross, where the short-term moving average dips below the long-term moving average, is often seen as the start of a downward trend.
Short-Term Momentum Weakens Against Long-Term Trend
Reportedly, ADA's 50-day Simple Moving Average (SMA) is currently declining from $0.74 and is nearing a crossover with the 200-day SMA at $0.734. This indicates that short-term momentum is lagging behind the long-term trend. Technically, this suggests a possible shift towards a bearish phase.
Market Sell-Off and Macro Uncertainty Weigh on ADA
Cardano previously surged to $1.19 following a strategic cryptocurrency reserve announcement on March 2nd. However, it has steadily declined amid a broader market sell-off and macroeconomic uncertainties. Currently, ADA has slightly recovered to $0.647 after rebounding for two consecutive days since its low on April 2nd.
Beyond technical indicators, overall macroeconomic instability is reportedly putting pressure on ADA's price. Federal Reserve Chair Jerome Powell's mention of "high uncertainty" and the decision to hold off on interest rate policies provide short-term relief. Yet, this has not translated into significant buying momentum.
Historical Patterns Suggest Uncertainty Despite Bearish Signals
However, analysis of past patterns suggests that a death cross does not always guarantee a sustained decline. For example, after a golden cross formed in November 2024, ADA rallied to $1.32 in early December. Conversely, during a death cross in May 2024, ADA fell to $0.277 before entering a sideways trading pattern.
While the current technical trend leans bearish, the report concludes that future movements could vary depending on multiple factors, similar to past instances. The resistance level around $0.68 and the support level near $0.60 could serve as short-term pivot points.