- Cardano (ADA) is facing strong bearish pressure following the emergence of a death cross and $150 million in monthly outflows, signaling waning investor confidence.
- Unless buying momentum returns soon, ADA could see further declines, potentially dropping to $0.44.
Cardano (ADA) is under heavy fire in the crypto market, plunging over 10% within 24 hours amid growing concerns from traders and investors alike. The drop has triggered a major technical warning: a death cross—a signal often associated with sustained bearish momentum.
Death Cross Spooks Traders
A death cross occurs when the 50-day moving average falls below the 200-day moving average, indicating a potential long-term downtrend. For Cardano, this marks the first appearance of this ominous pattern since May 2024. The development suggests increasing selling pressure and growing skepticism about ADA’s near-term prospects.
Unless buyer demand returns swiftly, ADA may be in for an extended slump.
Outflows Hit Hard: $150 Million Exit
On top of the technical signals, Cardano is grappling with a wave of capital outflows. According to Coinglass, $12 million exited ADA markets today alone, adding to a staggering $150 million in outflows over the past month, as reported by COINOTAG. This ongoing exodus highlights declining investor confidence and hints that many traders are bracing for further losses.
Price Targets: Downside Risks and Recovery Hopes
With ADA currently trading near $0.52, a worst-case scenario could see it drop to $0.44—a 14% decline. However, there’s still room for recovery. If new demand emerges and momentum shifts, ADA could retest resistance at $0.54, and possibly aim for a rebound toward $0.64.
What Should Investors Do?
As volatility surges, investors may need to rethink their strategies. Staying alert to key technical signals, such as moving averages and volume shifts, is critical. Diversifying holdings and reducing exposure to highly volatile assets like ADA could help cushion against further market shocks.
Cardano is walking a tightrope. With a bearish death cross, $150 million in outflows, and a shaky support level, ADA’s path forward depends heavily on whether investor confidence can be restored. Without it, further losses could be on the horizon.
