Cardano (ADA), the 10th largest cryptocurrency by market value, has formed what is known in technical analysis as a “death cross.” This event marks the first appearance of such a pattern for ADA in the year 2024.
Cardano (ADA), the 10th largest cryptocurrency by market value, has formed what is known in technical analysis as a “death cross.” This event marks the first appearance of such a pattern for ADA in the year 2024.
A death cross is a technical chart pattern that occurs when an asset’s short-term moving average crosses below its long-term moving average. This pattern is often interpreted as a bearish signal that could precede a downtrend.
Cardano’s ADA witnessed a bearish crossover of its 50-day and 200-day SMAs over the weekend, confirming the first death crossing in 2024.
The last time ADA witnessed a cross-death event was in June 2023, when prices briefly rose for weeks before falling. However, Cardano would bottom four months later before beginning a month-long rally that concluded with highs of $0.76 in March 2024. In the process, Cardano created another golden cross in November 2023.
This technical event occurs against a backdrop of market uncertainty, adding to speculation about ADA price action. While moving average crossovers are lagging indicators and are considered unreliable as independent predictors, they reflect market sentiment and momentum.
It is also worth noting that ADA price movement is not simply determined by chart patterns. Fundamental developments in Cardano and the broader crypto market may have a substantial impact on the market value of ADA.
Following the latest Cardano death cross, the ADA price bottomed out in the following months, and the crypto community is closely watching the ADA price behavior in this regard.
While the short-term outlook may be clouded by uncertainty, cryptocurrency enthusiasts believe that ADA could ultimately weather the storm and emerge stronger in the long term.
As past performance does not guarantee future results, it is unclear whether this indicates the beginning of a bearish phase or a temporary blip in ADA’s trajectory.
