What Happened to Cardano Last Week?

The sell-off in the cryptocurrency market deepened over the weekend, with major assets extending their weekly losses.

Cardano (ADA) was significantly affected, experiencing increased selling pressure and triggering a “death cross” signal on its short-term charts.

A death cross, indicating bearish momentum, occurs when the short-term moving average crosses below the long-term moving average. For Cardano, this pattern appeared on the four-hour chart as the 50-period moving average fell below the 200-period moving average. This signal suggests potential further declines for the ADA.

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According to Santiment, historical data shows that low seven-day average trader returns for leading cryptocurrencies, including ADA, increase the likelihood of a rebound. The online analytics company also noted that when we see such low 7-day average trader returns for leading cryptocurrencies such as BTC, ETH, ADA, XRP and others, the likelihood of a rebound increases significantly.

A relief rally for ADA could target the 50-day SMA at $0.397 and further at $0.43. A sustained break above the 200 day SMA at $0.50 could initiate a bullish recovery for Cardano, allowing it to break out of its current trading range. Conversely, if the decline continues, Cardano could find support between $0.31 and $0.33.

At the time of writing, ADA is down 3.5% over the past 24 hours to $0.3474 and down 15% for the week.

Alexander Stefanov