Cardano's price could face a significant drop due to the formation of a 'death cross' on the daily chart and overall crypto market volatility.
What is a 'Death Cross'?
A 'death cross' is a technical indicator that occurs when a short-term moving average (50-day) crosses below a long-term moving average (200-day), signaling a continued downward trend.
Current Metrics and Predictions
Currently, Cardano's price is $0.67, which is a 1% rise in the last 24 hours. However, over the past week, it has dropped by 6.4%. The death cross is a significant indicator of potential further decline, and the price could fall below $0.50, marking the lowest point in five months.
Factors Influencing the Price
The recent announcement of RLUSD token launch on ADA platform and the increase in long positions for Cardano might help support the price. Some traders are optimistic about a return to growth, similar to the rally seen in 2024.
While the formation of the 'death cross' is concerning, several factors could prevent a steep decline in Cardano's price, including new partnerships and some traders' confidence in the cryptocurrency's potential.
