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Highlights
- Cardano price might be on the verge of a 25% crash below $0.50 amid a looming death cross.
- If ADA falls to the multi-month low of $0.50, it might push the altcoin into a strong bear market.
- Cardano funding rates are positive and risen to the highest level since February, which shows long positioning.
Cardano price is on the verge of a 25% crash amid a looming death cross on its 1-day chart, which signals that the bearish trends are growing strong. The spiking volatility in the broader crypto market due to the looming Liberation Day tariffs by President Trump makes it more likely for this downtrend to happen.
Cardano Price Risks 25% Crash Amid Death Cross
Cardano price today trades at $0.67 with a slight 1% gain in 24 hours. ADA has faced intense selling pressure over the past week, with the 7-day dip now standing at 12%.
On the one-day price chart, Cardano was on the verge of confirming a death cross. The 50-day SMA has tipped south and approaching a bearish crossover with the 200-day SMA, which might push ADA price below $0.50 for the first time in five months.
The RSI is also showing that the selling pressure remains strong. This indicator stands at 44, and it also remains below the signal line, which shows a bearish Cardano price prediction.
If the death cross is confirmed and ADA price falls below $0.50, the next strong support level lies at $0.323. ADA might consolidate within the $0.30 and $0.32 range for an extended period if the buying activity remains weak.
Bullish Case for Cardano Price
Despite this looming death cross, other factors suggest that Cardano price might avert a crash. A recent Coingape article noted that ADA may be on the verge of a massive rally in the coming months if it repeats the 2024 pattern. If history rhymes, this altcoin might record an uptrend towards $2.50.
Meanwhile, Charles Hoskinson might also be the catalyst that helps Cardano price avert the death cross. The Cardano founder has revealed that Ripple’s RLUSD will launch on ADA, a move that might help drive the next price rally.
Besides the fundamentals, data from Coinglass suggests that some traders might be anticipating that Cardano will reverse from a bearish trend to a bullish one. ADA funding rates, which remain positive, have soared to the highest level since late February.
This metric indicates that traders are opening long positions on ADA, and they are paying higher fees to maintain their positions. As long positions build-up, it may trigger a positive sentiment toward Cardano. This might help the altcoin avert the risk posed by the death cross.
To sum up, Cardano price seems to be on the verge of a 25% crash that might push it below $0.50. However, developments within the Cardano ecosystem and long positioning might help in averting this crash.
Frequently Asked Questions (FAQs)
1. Will Cardano price crash 25% amid a looming death cross?
2. Can Cardano avoid a steep price decline?
3. What do funding rates show about Cardano?
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