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Crypto: Will Cardano's ADA token collapse soon?

Fri 23 Jun 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Invest

ADA, Cardano’s native cryptocurrency, is currently showing a bullish trend despite the bear market and is trading around $0.30. However, some signals indicate that a potential decline in the asset’s valuation cannot be ruled out.

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A warning of a potential ADA drop reported

Could ADA be in a precarious position despite its market dynamics? That’s what recent data concerning the price evolution of Cardano’s native crypto suggests.

The latest trends point to a death cross for the asset. It is a chart pattern used in technical analysis. It describes a situation where an asset’s short-term moving average meets its long-term moving average on the downside.

Analysts believe that the death cross is never a good sign for a crypto’s financial performance. Generally speaking, when this pattern appears, it’s to herald an upcoming downtrend in an asset.

Hence, this is not good news for ADA holders. The alert is all the more serious given that the crypto had not reported a death cross since 2021. Perhaps it’s time for users to get rid of their ADAs? That’s usually how things go.

However, that’s not what some professional investors such as Warren Buffett would recommend. “Buy when everyone else is selling” is the billionaire’s philosophy. Selling ADAs is therefore potentially not the best option.

It should also be pointed out that this event is taking place in a very specific context. The Cardano blockchain has been upgraded. The latter has undergone the addition of a latest node version that aims to bring even greater flexibility to the platform.

According to Rick McCracken, a member of the Cardano community, this development reaffirms the company’s commitment to its users. The company’s commitment is always to make relevant improvements that help transactions run more smoothly.

That being said, it is entirely hypothetical that a death cross signal would annihilate ADA’s potential. Despite the fluctuations of an ever-exciting crypto market, the cryptocurrency has always managed to maintain a bullish momentum.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.