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Cardano Golden Cross Ends In Under A Month; Price Drop Ahead

2 mins
Updated by Harsh Notariya
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In Brief

  • Cardano is facing a critical phase, with the end of its brief Golden Cross signaling potential bearish price action and the possibility of a Death Cross forming soon.
  • Long-term holders (LTHs) are holding steady, which could provide price support and limit further downside risk despite bearish technical indicators.
  • Cardano is currently trading at $0.67, with support at $0.66. A drop below this level could push the price further toward $0.60.
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Cardano (ADA) has recently experienced a significant decline, bringing the altcoin to near its monthly low. The potential end of its Golden Cross has raised concerns, as it could signal further bearish price action for the cryptocurrency. 

Despite these factors, long-term holders (LTHs) may help prevent a severe downturn by maintaining their positions.

Cardano Ends Its Golden Cross Short

The current market sentiment for Cardano points to the potential formation of a Death Cross. This happens when the 50-day exponential moving average (EMA) slips below the 200-day EMA. 

If confirmed, it will mark the end of the ongoing Golden Cross, which has only lasted for three weeks. This short-lived Golden Cross is even shorter than the previous Death Cross, which lasted for over a month.

The relatively brief Golden Cross has left traders with a sense of uncertainty. A reversal in trend may trigger more sell-offs, amplifying the downward momentum. Therefore, Cardano’s price is in a critical phase, with any further bearish developments likely causing a deeper correction.

Cardano EMAs
Cardano EMAs. Source: TradingView

On the macro level, the Mean Coin Age (MCA) shows signs of an uptick, indicating that long-term holders (LTHs) are holding steady instead of selling. This behavior is crucial for stabilizing Cardano’s price, as LTHs typically resist selling in the face of short-term volatility. Their commitment to holding ADA strengthens the support levels, which could cushion the impact of the bearish trends from the broader market.

The resilience of LTHs provides an important counterbalance to the negative signals emerging from technical indicators. As long as LTHs maintain their positions, it’s possible that Cardano can withstand some of the bearish pressure and limit the downside risk. 

Cardano MCA
Cardano MCA. Source: Santiment

ADA Price Could Bounce Back

Cardano’s current price is at $0.67, holding above the crucial support of $0.66. If the price fails to maintain this support, ADA could experience a further drop, possibly testing the $0.60 level. The loss of this key support could pave the way for additional losses, extending the ongoing downtrend.

The potential formation of the Death Cross would likely exacerbate the situation, bringing ADA to a month-and-a-half low. In such a scenario, the pressure on Cardano could intensify, making a recovery more difficult. Should the technical indicators align with broader market conditions, the risk of further declines increases significantly.

Cardano Price Analysis.
Cardano Price Analysis. Source: TradingView

On the other hand, if Cardano price can hold above $0.66 and bounce back, a rise above $0.69 is possible. A successful breach of this level would position ADA for a push toward $0.74, potentially invalidating the bearish thesis. LTHs’ support and a reversal in the broader market could fuel this recovery.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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