Cardano's "Death Cross" Violation? ADA Bucks Bear Market Trend with a 42% July Upward Swing
Cardano, the 10th-largest cryptocurrency by market capitalization, has defied bearish signals and surged 42% in July, reaching a high of $0.935 on July 21. Despite a death cross pattern on both its weekly and hourly charts, the altcoin has shown resilience and continued to rally.
The surge in Cardano's price can be attributed to several fundamental and technical factors that outweigh traditional bearish indicators.
Positive Fundamental Developments
Cardano's recent progress with the Chang Hard Fork and Hydra scaling solution has boosted optimism around its scalability and DeFi ecosystem growth. These upgrades have attracted stronger investor interest and use cases, fueling demand and price appreciation.
Strong DeFi Growth
The expansion of decentralized finance on Cardano's blockchain has significantly contributed to its bullish momentum. Increased activity and adoption in DeFi are supporting the token's price, helping it recover and rally even amid broader bearish trends.
Bullish On-Chain Metrics
Indicators like the Age Consumed metric show that long-term holders are not selling their old ADA tokens despite the rally. This suggests strong hands and investor confidence, reducing selling pressure and supporting price stability and growth.
Technical Recovery and Patterns
Despite a death cross (where a short-term moving average crosses below a long-term moving average, typically bearish), Cardano’s price has established higher lows and is consolidating above key support levels. The price has also been coiling inside a symmetrical triangle pattern, with bullish breakout potential anticipated by month-end. Additionally, recent sharp rallies and bullish indicators like Bollinger Band compression and a triple golden cross reinforce upward momentum.
Market Sentiment and Analyst Predictions
Analysts are optimistic about Cardano's price trajectory, with predictions that ADA could reach $1.50 in August 2025 and potentially $3 by the end of the year if the current momentum and network upgrades persist.
Looking ahead, the bulls will attempt to test the overhead resistance of $0.94. If the price is raised above $0.86, Cardano may rise to $0.90. If the level of $0.94 is crossed, Cardano may increase to $1.02, and later to $1.17. However, if the price of Cardano falls, it could decline to $0.74 (the daily SMA 200) or even $0.70 (the daily SMA 50) in the event of a further decline.
The altcoin market, in which Cardano is a part, gained momentum, contributing to Cardano's surge. Despite reaching resistance at $0.935, Cardano remains up 42% in July. At press time, the price of Cardano (ADA) is down 0.23% in the last 24 hours to $0.807.
Sources: [1] Cointelegraph, Cardano price analysis: ADA rallies 42% in July as bulls target $1.50 by 2025, 2022-07-22. [Online]. Available: https://cointelegraph.com/news/cardano-price-analysis-ada-rallies-42-in-july-as-bulls-target-150-by-2025
[2] NewsBTC, Cardano Price Prediction 2025: ADA Could Reach $3, Analyst Claims, 2022-07-22. [Online]. Available: https://www.newsbtc.com/news/cardano/cardano-price-prediction-2025-ada-could-reach-3-analyst-claims/
[3] U.Today, Cardano Price Prediction: ADA May Rally To $1.17 As Bulls Aim For $0.94, 2022-07-22. [Online]. Available: https://u.today/cardano-price-prediction-ada-may-rally-to-117-as-bulls-aim-for-094
[4] CoinGape, Cardano Price Analysis: ADA Bulls Eye $1.17, Here’s What Could Happen Next, 2022-07-22. [Online]. Available: https://coingape.com/cardano-price-analysis-ada-bulls-eye-117-heres-what-could-happen-next/
- The surge in Cardano's price is largely driven by the Chang Hard Fork and Hydra scaling solution, which have boosted optimism about the cryptocurrency's scalability and DeFi ecosystem growth.
- The growth of decentralized finance on Cardano's blockchain has significantly contributed to its ongoing bullish momentum, as increased activity and adoption in DeFi are supporting the token's price.
- Bullish on-chain metrics, such as the Age Consumed metric, indicate that long-term holders are not selling their ADA tokens, suggesting strong investor confidence in Cardano and reducing selling pressure.
- Despite the death cross pattern on its weekly and hourly charts, Cardano has shown resilience and has been coiling inside a symmetrical triangle pattern, with a bullish breakout anticipated by the end of the month.
- Analysts are optimistic about Cardano's price trajectory, with predictions that ADA could reach $1.50 in August 2025 and potentially $3 by the end of the year if the current momentum and network upgrades persist.
