Cardano’s native token ADA has printed a death cross technical pattern for the first time since December 2021, suggesting more pain could be ahead for the coin.

The scary death cross event comes even as the network rolls out the latest Node version, 8.1.1, on the mainnet.

Is ADA On The Cusp Of A Steep Selloff?

Cardano’s daily price chart has painted a death cross.

For those unaware, a death cross is a technical term from the world of traditional stock investing and describes an event when an asset’s short-term 50-day moving average moves below its long-term 200-day moving average. The chart pattern is a warning of a more profound price drop.

According to Trading View, ADA’s 50-day line crossed the 200-day line in a downward direction over the weekend, signalling a bearish crossover that typically prompts traders to sell.

Death crosses are never good. However, they are often welcomed by crypto aficionados as an opportunity to buy the asset at a discounted price. As veteran investor Warren Buffett once famously stated, “Buy when there’s blood in the streets.” The phrase basically translates to buy when everyone else is selling.

Notably, the apocalyptic-sounding chart pattern comes as an upgrade to reduce epoch transitions to make the Cardano chain smoother for network users went live on the mainnet on Monday.

Upgrade 8.1.1 Unleashes Top-Level Performance On ADA Mainnet

Cardano community member Rick McCracken took to Twitter to note that Node 8.1.1 had been activated on the network. This particular upgrade enhances operations across the blockchain by spreading the previously epoch boundary-focused computations throughout the entire epoch.

Node 8.1.1 alters how epoch calculations are made in a way that hastens network processes during the change in epochs. The update also fixes issues related to peer-to-peer (P2P) network communications and the ADA-based domain name system.

Addressing these concerns ensures a more robust and optimized experience for both new and existing users. The rollout of Node 8.1.1 further proves the continuous dedication of the Cardano development team to enhancing its blockchain technology.

That being said, the price trajectory of ADA, despite countless pops and drops over time, has rallied steadily skyward in the long-term — so it is unlikely another encounter with a death cross would spell lasting doom.

ADA was trading at $0.266 at publication time, a 1.29% jump over the last 24 hours.

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Filed under: Bitcoin - @ June 20, 2023 9:06 pm