Cardano (ADA) Market Analysis

Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, is on the verge of a potential moving average crossover on its four-hour chart. The four-hour simple moving average 50 (SMA 50) and the simple moving average 200 (SMA 200) have converged and are ready to make a crossover in the coming hours.

Given that the SMA 50 has turned downward, reflecting the recent bearish sentiment in the market, the likelihood of a death cross is increasing. This technical pattern occurs when the 50-period simple moving average (SMA 50) crosses below the 200-period simple moving average (SMA 200), often indicating a potential downtrend.

A dip of the SMA 50 below the SMA 200 would confirm the death cross, while the reverse indicates a golden cross, signaling a bullish trend.

Bulls Seek Comeback

Despite the impending bearish crossover, Cardano’s bulls are not giving up without a fight. There has been an uptick in buying pressure around key support levels, suggesting that bullish traders are attempting to prevent further losses and potentially trigger a rebound.

At press time, Cardano was down 1.19% in the last 24 hours to $0.7217. It rebounded off the MA 200 at $0.694 in early Friday’s session, indicating that the bulls are trying to arrest the recent decline.

Bears are reluctant to give up easily and are expected to sell near the moving averages. If the ADA price falls below the daily SMA 50 at $0.798, it will signal selling on rallies. The bears may aim to strengthen their position by lowering the price below the support level of $0.69. If they succeed, ADA might fall to $0.60, then $0.50.

Contrary to this belief, a break and close above the daily SMA 50 could indicate that bulls are back in the game, potentially raising ADA to $1.02.

As the market watches for the potential death cross formation, ADA bulls are trying to hold onto important support zones and push for a reversal. The coming sessions may be crucial for determining ADA’s price trend next.