The cryptocurrency market is flashing bearish signals as the end of the year approaches. Cardano, the 10th largest cryptocurrency by market capitalization, has completed a death cross pattern on its short-term charts.
In particular, a death cross pattern formed when the short-term moving average, MA 50, falling below the MA 200 appeared on the three-hour chart.
At press time, ADA was down 1.49% in the last 24 hours to $0.386, corresponding with a broader crypto market slump following weak U.S. jobs data.
Recently released jobs figures, which were hitherto delayed due to the government shutdown, showed a net loss over the past two months. A total of 64,000 jobs were added in November, while the unemployment rate rose to 4.6%, a four-year high compared to expectations of 4.4%. As for October, employment fell by 105,000 versus 119,000 jobs added in September.
Cardano is down 15% weekly as the crypto market remains in a weakened position following October’s sell-off.
What’s next: Key levels to watch
The altcoin market continues to seek a bullish catalyst as the extended sell-off since October weighed on investor sentiment.
Oversold signals presented in the latest death cross and the RSI indicator might offer a tentative glimmer of hope.
ADA is approaching a key level of support that acted as price bottom over the past year. Cardano rose 216% from the $0.32 support to $1.15 in November 2024, eventually reaching $1.32 in December of the same year. It will be interesting to see if history repeats itself this time.
In the short term, a return above $0.48 might help Cardano snap its current downtrend. If this is achieved, Cardano will target $0.51 next. A rise above this might begin a new uptrend for the ADA price, with the potential to reach $1. As mentioned earlier, crucial support is expected at the $0.32 level.