Cardano (ADA), the ninth-ranked cryptocurrency by market capitalization, is on the verge of a death cross on its daily chart. This technical indicator suggests that Cardano is losing momentum in the market as prices continue to dive.
Death cross signals caution as Cardano $1 rally stalls
The Cardano daily chart shows that the nine-day simple moving average is about to cross below the 21-day long-term moving average. This suggests a potential bearish signal for ADA, whose attempt at a rally over the last seven days is waning.
Cardano Death Cross Setup. Source: TradingView via CoinMarketCap
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Cardano broke several resistance levels as it climbed from a low of $0.71, aiming for the $1 level. The journey to this psychological level has met with huge resistance.
Despite eyeing a breakout rally, ADA has been unable to stay on track to attain its target.
As of this writing, ADA was changing hands at $0.7616, representing a 6.26% decline in the last 24 hours. Given the asset’s price volatility, investors are showing little enthusiasm. Trading volume is only slightly up by 4.82% at $1.16 billion.
With the near formation of a death cross, traders might need to brace for further volatility that could hit the ecosystem.
ADA futures momentum fails to support price
As reported by U.Today, Cardano traders anticipated a rally to the $1 level as they committed 1.2 billion ADA worth over $958 million to its futures market. However, the market has not maintained the bullish momentum that was projected.
ADA investors must watch for the next catalyst to support an upward price movement.
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Unfortunately, Cardano’s Bollinger Bands recently moved to extreme levels, which might be responsible for the ongoing volatility. Notably, this technical indicator suggests a short-term retracement for ADA.
However, with Cardano’s trading volume in the green, a spike in this metric could trigger a price shift.