Amid a drop in the overall crypto market cap, Cardano's price reenters a bearish consolidation phase. Let's explore potential outcomes for ADA.
Cardano's Death Cross Setup
Over the last week, Cardano's price fell from $0.7448 to $0.7004. This decline may lead to a classic death cross formation with the 50-day moving average crossing below the 200-day. If this scenario unfolds, ADA's price could continue to drop, testing levels below $0.60. Attempts by Cardano bulls to overcome the $0.80 resistance level in recent weeks have failed, intensifying concerns among traders.
Potential ADA Price Rebound
Despite the potential threat, Cardano might stabilize at the $0.70 level, providing an opportunity for price recovery. Positive developments in the Cardano ecosystem, such as shifting community sentiment and recent statements by founder Charles Hoskinson debunking the 'ghost chain' criticism, lay the groundwork for a short-term recovery.
Factors Influencing Price Growth
Factors supporting Cardano's growth include asset managers' interest in creating an ADA-based ETF. These steps could help the cryptocurrency benefit from current changes in US market regulations.
In the upcoming period, Cardano's price may either show further decline or unexpectedly recover due to positive factors in its ecosystem and changing market sentiment.
