Cardano (ADA) is approaching the Death Cross below $0.7

Cardano (ADA) has gone through a tough month. After some initial price increases, this altcoin has now dropped by 37%, wiping out most of its recent gains.

Although broader market indicators suggest a bullish outlook, technical patterns indicate that this momentum may not last long.

ADA will continue to decrease in price

ADA seems to be approaching a Death Cross, a bearish technical signal. This occurs when the 50-day EMA ( cuts below the 200-day EMA. History shows that when such a crossover happens, the value of the asset often declines sharply.

If this pattern is confirmed, it will be the first time ADA encounters a Death Cross in the past 10 months. It will also officially end the 5-month long Golden Cross pattern, a previous bullish pattern that has supported the growth momentum of this asset.

With weakening momentum, investors may see this as a sign of a shift towards the next downward pressure.

![ADA ])https://img.gateio.im/social/moments-361f05cc150ffb179a46fea78e0b92a8(ADA Price Chart | Source: TradingViewThe on-chain data is further diminishing investor confidence. The Long/Short MVRV differential — an indicator comparing the profitability of long-term holders )LTH( with short-term holders )STH( — is gradually decreasing.

Although still positive, this decline indicates that the profits of LTH are shrinking. The index is currently at its lowest level in 4 months, increasing the risk that LTH will take profits. If these investors start selling to protect their profits, it could create additional selling pressure. This could undermine any upward momentum that Cardano is trying to maintain.

!)[ada]https://img.gateio.im/social/moments-164fb3008983ca9872bba3997efaccba(Cardano's Long/Short MVRV Spread | Source: Santiment## ADA price is consolidating

ADA is currently trading at $0.73, a decrease of 37% from its recent high. The price drop has broken the long-term upward trend, although it remains above the support level of $0.70 – which serves as an important technical barrier.

However, the upcoming Death Cross combined with the weakening confidence of long-term investors may push Cardano below this support level. If the $0.7 level is broken, the ADA price could slide down to $0.62. This would mark the next phase of correction, reinforcing the bearish outlook.

![ADA ])https://img.gateio.im/social/moments-b5db32aeaca9af75ad027cc208977bac(ADA Price Chart | Source: TradingViewOn the other hand, if ADA wants to invalidate the bearish argument, it must rise above $0.77 to end the current 11-day consolidation phase.

A successful breakout could push the price up to $0.85, reclaiming some of the losses and potentially restoring the confidence of short-term investors.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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Dinh Dinh

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