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Cardano (ADA), the 10th-largest cryptocurrency by market cap, is on the verge of a technical chart signal as broader market weakness intensifies. On the hourly chart, ADA is approaching a death cross, a bearish indicator formed when the short-term 50-hour moving average falls below the longer-term 200-hour moving average.
While this pattern is most commonly utilized on the daily or weekly charts, it can also be seen on shorter time frames, indicating the continuation of near-term selling pressure.
ADA's latest dip coincides with a broader pullback in the crypto market, with Bitcoin (BTC) and Ethereum (ETH) both losing ground during the last 24 hours. As of press time, ADA is trading at $0.555, down over 5% on the day and 8% for the week.
If the downturn continues, ADA could find its next support at $0.51. If ADA falls below this level, it could drop as low as $0.40. On the other hand, if buyers break beyond $0.60, ADA might hit $0.69 instead of $0.78.
Crypto market in red
The crypto market is largely trading in red in the early Thursday trading session, owing to profit-taking after an earlier rise during the week and as investors evaluate macroeconomic concerns. Cardano was not exempt from the market drop, which wiped out $228 million in leveraged positions across the market.
Powell testified before the Senate Banking Committee on Wednesday, reiterating the central bank's primary goal of keeping inflation under control.
Jobless claims declined to 236,000 in the week ending June 21, falling short of Dow Jones economists' prediction of 244,000.
Investors are expecting the May personal consumer expenditures index on Friday. Powell stated on Tuesday that the Fed's preferred inflation measure is projected to climb to 2.3%, while the core measure, which excludes food and energy, is expected to increase to 2.6%. This is up from 2.1% and 2.5%, respectively, in April.
Vladislav Sopov
U.Today Editorial Team