Cardano (ADA) Price at Risk of Damning Death Cross

The price of Cardano (ADA) has reverted into bearish consolidation mode after the combined crypto market cap dropped by 3.18% to $2.77 trillion. At the time of writing, the price of Cardano was down 5.43% in 24 hours to $0.7004. With this massive drawdown, a potential death cross now hangs on the horizon for ADA.

Cardano death cross setup

A crucial make-it-or-break-it pivot was identified on Cardano earlier in the week, with prices finally succumbing to bearish pressures. With the current outlook, the coin dropped from a high of $0.7448 to its current price, which marks a 24-hour low.

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This price shift pushes the coin further into a possible death cross formation. The ADA/USDT chart shows the 50-day Moving Average about to cross below the 200-day Moving Average, the classic setup for a death cross.

If this trend plays out, it might set the coin on a defined bearish trajectory, forcing it to retest its multi-month lows south of $0.60. The frantic efforts of Cardano bulls to retest the $0.80 resistance level over the past few weeks have failed, ushering in more concerns for ADA bulls as to what may potentially come next.

ADA price may bounce back soon

Despite the threat of a death cross, Cardano may capitulate from its current position and set the $0.70 price level as a decisive support. From here, it may bounce back to reclaim its lost market valuations.

Events in the Cardano ecosystem back the thesis of a potential rebound in the short term. The community sentiment toward the chain is changing for the better after founder Charles Hoskinson debunked the “ghost chain” controversy within the ecosystem earlier this week.

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Like other top coins, asset managers are also looking to float a Cardano ETF product. This offering now gives the digital currency a basis to benefit from the current regulatory shift of U.S. market regulators.

These and more ecosystem updates are poised to set ADA up for a more decisive rebound soon.