Cardano Faces Death Cross as ADA Price Plummets: Analysis
Cardano has plummeted by 16% in the past 24 hours, with the ADA price dropping to $0.3005 on a day when the crypto market as a whole loses 15%.
ADA is now down by 28% in a week and by 14% in a month, with the altcoin clinging onto only a modest 3% gain in the past year.
Discouragingly, today’s big loss means that its current price has formed a ‘death cross’ in relation to its 30-period moving average.
Such a cross is usually a sign of further incoming losses, with negative economic data depressing sentiment throughout markets today.
If ADA’s chart offers any consolation, it’s that now is the perfect time to buy the dip.
Its indicators already suggest that the coin has entered oversold territory and should rebound soon.
For example, its relative strength index (yellow) fell below 20 this morning, which is a sign of excessive selling.
Likewise, its 50-period average (orange) has now dropped well below its 200-period average (green), while the coin’s current price is substantially below both.
As mentioned above, this means that ADA has seen a death cross, yet it’s arguable that the worst may already be over.
In purely technical terms, the market is massively undervaluing ADA right now, with the coin having been subdued for well over a week now.
This would ordinarily warrant a big rebound, yet the cryptocurrency market has suffered big losses today.
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