Cardano Faces Death Cross as Market Shows Uncertainty

• Death cross signals bearish trend; price dropped from $0.484 peak.
• Fed’s cautious stance keeps market sentiment uncertain, impacting Cardano’s performance.
• Cardano eyes recovery: key targets are $0.50, $0.90, support at $0.40.

Cardano (ADA) has recently experienced a significant technical pattern known as the “death cross.” This occurs when the 50-hour moving average (MA) falls below the 200-hour MA, signaling potential bearish trends.

Cardano’s hourly chart displayed this pattern after the price peaked at $0.484 on December 9, only to fall over the next two days. As of now, the cryptocurrency has shown signs of a minor rebound, up 2.47% in the past 24 hours, bringing its price to around $0.424.

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Market Conditions Contributing to the Decline

The overall market environment remains uncertain, largely influenced by recent decisions made by the U.S. Federal Reserve. The central bank lowered its borrowing rate by a quarter-percentage point, bringing it to a range of 3.5% to 3.75%. While this might have been seen as a positive development, the Fed’s cautious stance on future rate cuts—signaling that only one rate cut is expected in 2026 has kept market sentiment in a state of indecision.

Moreover, Cardano’s performance is closely tied to its trading return. According to Santiment, the average 30-day trading return for ADA stands at -4.4%, indicating that most traders are currently facing losses. This could present an opportunity for Cardano to regain momentum, especially if the market conditions improve.

Key Targets for Cardano Moving Forward

If the current rebound persists, Cardano could aim for the $0.50 mark. Further upside could push the price toward $0.90. On the downside, support is expected at $0.37 and $0.40, areas where Cardano could find some stability if the market downturn continues.

As Cardano attempts to recover from this death cross, attention is turning to the upcoming developments within its ecosystem. The integration of Pyth’s Lazer oracle network is expected to bring significant improvements to the blockchain’s capabilities, enhancing its ability to deliver real-time market data. Although deployment is planned for early 2026, the anticipation around this development could help drive investor interest and positively impact Cardano’s long-term outlook.

Cardano’s efforts to integrate new technology and its ability to weather market challenges will be crucial in determining its trajectory in the coming months. While the death cross is a concerning signal, it’s not the only factor influencing ADA’s price action.

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