Cardano (ADA) has shown an unexpected price recovery following the appearance of a bearish signal known as the 'death cross' on its daily chart.
Unexpected Recovery of Cardano (ADA)
The 'death cross' signal, where the 50-day moving average falls below the 200-day moving average, traditionally indicates further price declines. This indicator emerged during a broader downturn in the crypto market, triggering liquidations totaling $1.44 billion in a single day. Despite this, ADA rebounded sharply from $0.51 and sustained its momentum throughout Monday's volatile trading session.
Technical Analysis and Key Levels
Technical analysts are now monitoring the resistance zone between $0.70 and $0.73 as a potential breakout point. Key support holds between $0.40 and $0.51, providing a buffer against immediate downward pressure. If ADA pushes past the resistance range, the death cross signal could be invalidated in the short term. Traders watch for volume confirmation and consistent closes above resistance to confirm a possible trend reversal.
Development of Cardano Network and Its Fundamentals
Input Output, Cardano’s main development team, reported continued growth across key network metrics in its March update. According to the team, nearly 2,000 projects are actively building within the Cardano ecosystem as of March 28. The delegated wallet count increased by 4,000 in March, bringing the total to approximately 1.328 million wallets. The number of token policies expanded by 2,578, while over 30,000 native tokens were minted last month. Smart contracts in Plutus scripts increased to 129,745 instances, of which 5,909 worked on Aiken code. The Lace v.1.21.0 update with node v.10.2.1 release enhanced tracing capabilities and started Ouroboros Genesis integration implementation.
The price recovery of Cardano (ADA) and the ongoing development of the network underscore the resilience and potential of this cryptocurrency, despite market volatility.
