Cardano (ADA), the 10th-largest cryptocurrency by market cap, is on the verge of a technical chart signal as broader market weakness intensifies. On the hourly chart, ADA is approaching a death cross, a bearish indicator formed when the short-term 50-hour moving average falls below the longer-term 200-hour moving average.
While this pattern is most commonly utilized on the daily or weekly charts, it can also be seen on shorter time frames, indicating the continuation of near-term selling pressure.
ADA’s latest dip coincides with a broader pullback in the crypto market, with Bitcoin (BTC) and Ethereum (ETH) both losing ground during the last 24 hours. As of press time, ADA is trading at $0.555, down over 5% on the day and 8% for the week.
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If the downturn continues, ADA could find its next support at $0.51. If ADA falls below this level, it could drop as low as $0.40. On the other hand, if buyers break beyond $0.60, ADA might hit $0.69 instead of $0.78.
Crypto market in red
The crypto market is largely trading in red in the early Thursday trading session, owing to profit-taking after an earlier rise during the week and as investors evaluate macroeconomic concerns. Cardano was not exempt from the market drop, which wiped out $228 million in leveraged positions across the market.
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