Cardano’s ADA price could soon drop by 25% because of a “death cross” that’s forming on its daily chart.
A death cross happens when a short-term average price line (the 50-day moving average) goes below a longer-term price line (the 200-day moving average). This is a sign that shows that the downward trend is likely to continue.
In addition to this, the overall crypto market has been very volatile lately, especially because of the possible new tariffs by President Trump, which could make the situation worse for Cardano.
Right now, Cardano’s price is $0.67, which is just a small 1% increase in the last 24 hours. However, over the past week, the price has dropped by 6.4%. The death cross on the chart is one of the main things to worry about because it often signals bigger drops in price.
If this happens, Cardano might drop below $0.50, which would be the lowest point it’s seen in five months.
Additionally, the Relative Strength Index (RSI) is currently at 44, which means there will likely be more selling pressure.
If Cardano falls below $0.50, the next place the price could go is around $0.323. This means ADA might stay stuck in that range for a while, especially if there isn’t much buying interest.
But even though things look bad, there are a few things that could help Cardano avoid a big crash. One is the recent news that Ripple’s RLUSD token will launch on the ADA platform. This was recently announced by Charles Hoskinson, the founder of Cardano.
This could help boost Cardano’s value. Some people also think that Cardano might follow a pattern seen in 2024, where it saw a big price rally. If that happens, ADA could even rise to $2.50.
Also, many traders are betting on a rebound. According to Coinglass, the number of long positions being opened for Cardano has increased a lot, which could help turn things around for the cryptocurrency.
Also Read: Trump’s Tariff Announcement To Push XRP Price Beyond $3?
