Cardano (ADA), the eighth-largest cryptocurrency, is on the verge of a potential moving average crossover on its four-hour chart.
Cardano Technical Analysis
The four-hour simple moving average for 50 periods (SMA 50) and the simple moving average for 200 periods (SMA 200) are ready to make a crossover soon. The SMA 50 has a downward trend, reflecting the recent bearish sentiment in the market. This increases the likelihood of a 'death cross,' a technical pattern indicating a potential downtrend when the SMA 50 crosses below the SMA 200 from above.
Bulls and Bears Actions
Despite the imminent bearish crossover, Cardano's bulls are not giving up. There is increased buying pressure around key support levels, suggesting that bullish traders are attempting to prevent further losses and possibly trigger a rebound. At the time of writing, Cardano was down 1.19% over the last 24 hours at $0.7217. Cardano rebounded off the MA 200 at $0.694 in early Friday's session, indicating that bulls are trying to arrest the recent decline.
Importance of Upcoming Sessions
The market is watching for the potential 'death cross' formation, and ADA bulls are trying to hold onto key support zones and push for a reversal. If the ADA price falls below the daily SMA 50 at $0.798, it will signal selling at rallies. The bears might aim to strengthen their position by lowering the price below the support level of $0.69, which could lead ADA to fall to $0.60, then $0.50. Conversely, a breakout and close above the daily SMA 50 may suggest that bulls are back in the game, potentially lifting ADA to $1.02. The upcoming sessions are crucial for determining ADA's next price direction.
Investors are keenly observing the forthcoming sessions to determine the subsequent price movement of Cardano. Bulls strive to protect key levels, yet bearish sentiment remains dominant. The outcome of this battle will dictate Cardano's future trajectory.
