The cryptocurrency market is giving off bearish signals as the end of the year approaches. Cardano, the 10th largest cryptocurrency by market cap, has completed a death cross pattern on its short-term charts.
Notably, a death cross pattern formed when the short-term moving average, MA 50, fell below the MA 200 appeared on the three-hour chart.
At press time, ADA was down 1.49% in the last 24 hours to $0.386, corresponding to a broader cryptocurrency market decline following weak US employment data.
Recently released employment figures, which have so far been delayed due to the government shutdown, showed a net loss over the past two months. A total of 64,000 jobs were created in November, while the unemployment rate rose to 4.6%, a four-year high compared to expectations of 4.4%. As for October, employment fell by 105,000 compared to the 119,000 jobs created in September.
Cardano is down 15% weekly as the crypto market remains in a weakened position following the October sell-off.
What’s next: key levels to consider
The altcoin market continues to search for a bullish catalyst as the prolonged sell-off since October affected investor sentiment.
The oversold signals presented in the latest death cross and the RSI indicator could offer a ray of hope.
ADA is approaching a key support level that acted as a price bottom for the past year. Cardano rose 216% from the $0.32 support to $1.15 in November 2024, eventually reaching $1.32 in December of the same year. It will be interesting to see if history repeats itself this time.
In the short term, a performance above $0.48 could help Cardano break its current downtrend. If this is achieved, Cardano will target $0.51 next. A rise above this could start a new uptrend for ADA price, with the potential to reach the dollar. As mentioned above, crucial support is expected at the $0.32 level.
