ADA, the native crypto of Cardano, is rather on an uptrend despite the bear market and is currently trading around $0.30. However, certain signals show that a potential fall in the valuation of the asset cannot be ruled out.
The alert of a possible fall in the ADA signaled
Is ADA in bad shape despite its dynamism in the crypto market? This is suggested by recent data regarding the price action of the Cardano native crypto.
The latest trends are indeed signaling a death cross about the asset. It is a chart pattern used in technical analysis. It describes a situation where the short-term moving average of an asset meets, on the downside, the long-term moving average.
For analysts, the death cross is never a good sign for the financial performance of a crypto. Typically, when this pattern appears, it is to announce an upcoming down cycle in an asset.
Therefore, we can therefore consider that this is not good news for ADA holders. The alert is all the more serious as the crypto had not reported any death crosses since 2021. Perhaps now is the time for users to get rid of their ADAs? This is generally what is done.
However, this is not what some professional investors like Warren Buffett would recommend. « Buy [des actifs, Ndlr] when everyone sells, such is the philosophy of the billionaire. Selling your ADAs is therefore potentially not the best option.
Moreover, it should be noted that this event occurs in a very specific context. That of the Cardano blockchain upgrade. The latter has undergone the addition of a latest version of node which aims to bring more flexibility to the platform.
According to tweeter Rick McCracken, a member of the Cardano community, this advance reaffirms the company’s commitment to users. This consists in always making relevant improvements favorable to the fluidity of transactions.
That being the case, it is entirely hypothetical that a death cross signal would destroy the potential of the ADA. Despite the upheavals of a crypto market still in turmoil, crypto has always been able to maintain a bullish momentum.
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