Cardano (ADA), which holds the 8th position in the list of largest cryptocurrencies by capitalization, is experiencing a possible “fatal intersection” on its 4-hour chart. This pessimistic technical model, where the 50-period Simple Moving Average (SMA) crosses below the 200-period SMA, often indicates a downward trend.
However, Cardano bulls are resisting! Increased purchasing activity near key support levels indicates that they are trying to avoid further losses and possibly provoke an increase.
At the time of writing, Cardano has fallen by 1.19% in the last day and is trading at $0.7217. However, it rebounded from the 200-day moving average (MA) at $0.694 earlier today, indicating that buyers are trying to hold the line against the recent decline. Ethereum Holders Join Forces to Protect $1886 as Important Assistance During Negative Trend
As the market anticipates a probable death cross, bulls are battling to protect vital support. The coming trading sessions will be crucial in figuring out where ADA goes next.
If the price breaches and closes above the 50-day SMA, it may indicate the bulls are returning. ADA may then climb to $1.02.
The bears are not giving up without a fight and are anticipated to sell around the moving average. If ADA declines below the 50-day SMA at $0.798, it implies there is selling pressure on rallies. The bears may attempt to drive the price below the $0.69 support level. If they are successful, ADA may fall to $0.60, and subsequently possibly $0.50.
