Cardano price is on the verge of a 25% crash amid a looming death cross on its 1-day chart, which signals that the bearish trends are growing strong. The spiking volatility in the broader crypto market due to the looming Liberation Day tariffs by President Trump makes it more likely for this downtrend to happen.
Cardano Price Risks 25% Crash Amid Death Cross
Cardano price today trades at $0.67 with a slight 1% gain in 24 hours. ADA has faced intense selling pressure over the past week, with the 7-day dip now standing at 12%.
On the one-day price chart, Cardano was on the verge of confirming a death cross. The 50-day SMA has tipped south and approaching a bearish crossover with the 200-day SMA, which might push ADA price below $0.50 for the first time in five months.
The RSI is also showing that the selling pressure remains strong. This indicator stands at 44, and it also remains below the signal line, which shows a bearish Cardano price prediction.
If the death cross is confirmed and ADA price falls below $0.50, the next strong support level lies at $0.323. ADA might consolidate within the $0.30 and $0.32 range for an extended period if the buying activity remains weak.
Bullish Case for Cardano Price
Despite this looming death cross, other factors suggest that Cardano price might avert a crash. A recent Coingape article noted that ADA may be on the verge of a massive rally in the coming months if it repeats the 2024 pattern. If history rhymes, this altcoin might record an uptrend towards $2.50.
Meanwhile, Charles Hoskinson might also be the catalyst that helps Cardano price avert the death cross. The Cardano founder has revealed that Ripple’s RLUSD will launch on ADA, a move that might help drive the next price rally.
Besides the fundamentals, data from Coinglass suggests that some traders might be anticipating that Cardano will reverse from a bearish trend to a bullish one. ADA funding rates, which remain positive, have soared to the highest level since late February.
This metric indicates that traders are opening long positions on ADA, and they are paying higher fees to maintain their positions. As long positions build-up, it may trigger a positive sentiment toward Cardano. This might help the altcoin avert the risk posed by the death cross.
To sum up, Cardano price seems to be on the verge of a 25% crash that might push it below $0.50. However, developments within the Cardano ecosystem and long positioning might help in averting this crash.
Frequently Asked Questions (FAQs)
Cardano price might drop by 25% to a multi-month low amid a looming death cross on the one-day chart, which hints toward a bearish reversal.
Cardano price can avoid a steep decline in price if buying pressure resumes and the altcoin averts the death cross signal.
Cardano price might be on the verge of an uptrend after the funding rates flipped positive. This indicates many traders are opening long positions.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/cardano-price-today-adas-death-cross-signals-25-crash/
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