Cardano Faces 2.45% Decline, Approaches Bearish Death Cross
2min read Cardano, a prominent cryptocurrency, is on the verge of a significant technical milestone that could influence its price trajectory. Currently priced at $0.6484, the cryptocurrency has experienced a 2.45% decline over the past 24 hours. Technical indicators suggest that Cardano is approaching its first "death cross" of 2025, a scenario where the 50-day simple moving average (SMA) crosses below the 200-day SMA, typically signaling bearish momentum.
Cardano’s recent price movements indicate that the 50-day SMA, currently at $0.74, is on a downward trend and is likely to cross below the 200-day SMA, which stands at $0.734. This crossover, known as the death cross, is often interpreted as a bearish signal, suggesting that the short-term momentum of Cardano is underperforming compared to its long-term trend. Historically, a death cross has led to further price declines, although the extent of the drop can vary.
Ask Aime: What impact will Cardano's first death cross of 2025 have on its price trajectory?
Despite the impending death cross, it is crucial to recognize that technical indicators are not always reliable predictors of future price action. While historical patterns can provide insights into market sentiment, they do not guarantee that prices will follow the same trajectory. Therefore, ADA's price could experience a reversal even after the death cross forms, depending on other market factors.
Over the past week, Cardano has seen a notable decrease in price, with a 7.67% drop. After reaching a peak of $1.19 in early March 2025, the coin has struggled to maintain its momentum, partly due to broader market concerns that have weighed on investor sentiment. Additionally, the daily trading volume has decreased by 58.72%, with just under $394 million traded in the last 24 hours. A decrease in trading volume typically suggests that market participants are losing interest or that there is waning demand for ADA.
Despite these challenges, there have been some positive developments surrounding Cardano. Charles Hoskinson, the co-founder of Cardano, recently confirmed that Ripple’s RLUSD stablecoin would be launching on the Cardano network. This news sparked some optimism and interest in ADA. Additionally, Hoskinson hinted at the possibility of Cardano playing a role in Bitcoin’s decentralized finance (DeFi) ecosystem. These announcements could potentially help Cardano regain momentum, but for now, the technical indicators suggest a cautious outlook.
As Cardano approaches the death cross, the primary question is whether the price will continue its downward trend or if there will be a reversal. The chart shows a pattern of consolidation, with ADA price action fluctuating within certain support and resistance zones. According to crypto analyst Seth fin, strong support is seen around the $0.6000–$0.6500 range, while resistance lies near the $0.7000–$0.7500 levels. If ADA fails to break through the resistance, the price could continue its decline towards these support zones.
One potential scenario is that the price could experience a bounce if it holds at these support levels, particularly the $0.6000 zone. This would signal that the market is still interested in buying ADA at lower prices. On the other hand, if the price fails to hold these support zones and breaks below them, further downside may follow, potentially leading to a retest of lower support zones in the $0.3000–$0.4000 range.
