- Cardano is nearing a death cross on its daily chart, signaling potential bearish momentum as its rally toward $1 stalls.
- Despite strong futures market interest, technical indicators and increased volatility suggest a short-term pullback may be ahead.
Death Cross Threatens Cardano’s Recent Momentum
Cardano (ADA), the ninth-largest cryptocurrency by market cap, is teetering on the edge of a bearish technical signal known as the “death cross.” On the daily chart, ADA’s nine-day simple moving average is about to dip below the 21-day moving average—a classic red flag that often hints at prolonged downside pressure.
This development casts a shadow over Cardano’s recent price attempt to reclaim the coveted $1 level. ADA had surged from a low of $0.71, breaking past key resistance points. However, its bullish momentum has now stalled, and the bears appear to be tightening their grip.
$1 Rally Fizzles as ADA Slides Below Key Support
At the time of writing, Cardano was trading at $0.7616—down 6.26% over the past 24 hours. Despite a modest uptick in trading volume (up 4.82% to $1.16 billion), investor sentiment remains cautious amid increasing volatility.
ADA’s recent price action suggests that buyers are losing confidence, especially as it continues to face heavy resistance near the psychologically important $1 mark. The looming death cross only reinforces bearish expectations and may deter new capital from entering the market.
Futures Market Commitment Fails to Spark Bullish Breakout
Cardano bulls had high hopes earlier this month, committing over 1.2 billion ADA—worth more than $958 million—to the futures market. Yet despite this show of confidence, the market failed to respond with a sustained rally.
Without a clear catalyst, ADA’s upward trajectory has faltered. Traders and investors now face uncertainty and are looking for fresh momentum to drive ADA forward.
Bollinger Bands Indicate Near-Term Pullback Risk
Further complicating Cardano outlook is the behavior of its Bollinger Bands. The indicator has stretched to extreme levels, signaling that ADA may face a short-term retracement. Unless trading volume sees a significant spike, breaking past this volatility roadblock could prove difficult.
In short, Cardano’s path to $1 is facing serious technical headwinds. As the death cross nears, traders should prepare for heightened turbulence and keep a close eye on key support levels and market catalysts.
