Cardano (ADA) Faces Potential Decline Amid Death Cross Threat and Shrinking Long-Term Holder Profits
The post Cardano (ADA) Faces Potential Decline Amid Death Cross Threat and Shrinking Long-Term Holder Profits appeared on BitcoinEthereumNews.com.
Cardano (ADA) has experienced significant volatility this month, plunging 37% and facing critical technical indicators that suggest further declines. The market sentiment is increasingly cautious as the MVRV Long/Short Difference signals narrowing profits for long-term holders, raising alarms about potential profit-taking. As ADA grapples with support around $0.70, analysts are closely watching for a potential move to $0.62, emphasizing the critical nature of these price levels. This article explores Cardano’s recent price action and impending technical signals, aiming to provide investors with insights on potential future movements. Cardano’s Technical Indicators Signal Further Potential Losses In the volatile world of cryptocurrencies, Cardano’s recent downturn seems particularly significant as it approaches a Death Cross, a traditional bearish indicator. This technical pattern is characterized by the short-term 50-day exponential moving average (EMA) dropping below the long-term 200-day EMA, suggesting a strong downward momentum. Historically, such crossovers have preceded sharp declines in asset value. If confirmed, this would represent Cardano’s first Death Cross in ten months, marking a stark end to a five-month period characterized by a Golden Cross. This prior pattern had fostered optimism among investors, but the current scenario casts a shadow over potential price recovery. All these factors indicate that investor sentiment is shifting, with many viewing the Death Cross as a cue for potential sell-offs and a challenging environment for further price appreciation. Cardano EMAs. Source: TradingView On-chain metrics also indicate a declining trend in investor confidence. The MVRV Long/Short Difference—a vital statistic assessing the profitability of long-term investors relative to short-term holders—has seen a consistent downward trajectory. Currently, this metric has descended to a four-month low, suggesting that long-term holders are experiencing shrinking profits. This could signal an increase in profit-taking activities if the trend continues. Cardano MVRV Long/Short Difference. Source: Santiment ADA’s Price Action and Key Support Levels…
Filed under: News - @ March 22, 2025 11:20 am