Cardano on Verge of Death Cross on Daily Chart

utoday
24 May

Cardano (ADA), the ninth-ranked cryptocurrency by market capitalization, is on the verge of a death cross on its daily chart. This technical indicator suggests that Cardano is losing momentum in the market as prices continue to dive.

Death cross signals caution as Cardano $1 rally stalls

The Cardano daily chart shows that the nine-day simple moving average is about to cross below the 21-day long-term moving average. This suggests a potential bearish signal for ADA, whose attempt at a rally over the last seven days is waning.

Cardano Death Cross Setup. Source: TradingView via CoinMarketCap

Cardano broke several resistance levels as it climbed from a low of $0.71, aiming for the $1 level. The journey to this psychological level has met with huge resistance.

Despite eyeing a breakout rally, ADA has been unable to stay on track to attain its target.

As of this writing, ADA was changing hands at $0.7616, representing a 6.26% decline in the last 24 hours. Given the asset's price volatility, investors are showing little enthusiasm. Trading volume is only slightly up by 4.82% at $1.16 billion.

With the near formation of a death cross, traders might need to brace for further volatility that could hit the ecosystem.

ADA futures momentum fails to support price

As reported by U.Today, Cardano traders anticipated a rally to the $1 level as they committed 1.2 billion ADA worth over $958 million to its futures market. However, the market has not maintained the bullish momentum that was projected.

ADA investors must watch for the next catalyst to support an upward price movement.

Unfortunately, Cardano’s Bollinger Bands recently moved to extreme levels, which might be responsible for the ongoing volatility. Notably, this technical indicator suggests a short-term retracement for ADA.

However, with Cardano’s trading volume in the green, a spike in this metric could trigger a price shift.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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