Cardano (ADA), the tenth-largest cryptocurrency, is showing an unexpected recovery, increasing by 42% in July despite bearish signals on the charts.
What is a Death Cross?
A death cross occurs when a short-term moving average (usually the 50-day) falls below a long-term moving average (like the 200-day). It is often seen as a bearish signal, often indicating deeper corrections or extended downtrends.
Cardano's Recovery: 42% Surge
Unusually, after the bearish technical pattern, Cardano began to rally, which is not typical in such situations. Since the last week of June, as the broader altcoin market gained momentum, ADA's price has risen consecutively for four weeks, culminating in a high of $0.935 on July 21 before meeting resistance.
Price Outlook for ADA
At press time, ADA was down 0.23% in the last 24 hours to $0.807 and down 5.13% weekly, erasing its seven-day gains during the latest crypto market sell-off. Cardano has created a bearish death cross on its hourly chart, signaling that bears are attempting a short-term return. If the price falls from its current level, ADA could decline to $0.74 and then to $0.70. To regain control, buyers must raise the price above $0.86. If they do, ADA may rise to $0.90 and then to $0.94.
Cardano (ADA) demonstrates unexpected strength in the market, overcoming bearish signals and showing growth. Future price changes will depend on buyers' actions and general market sentiment.
