Cardano reversed from a $0.536 low, recovering toward its 50-hour and 200-hour moving averages despite an hourly death cross signal.
ADA gained over 2 percent after facing early-week profit-taking, suggesting short-term buyers are stepping back into the market.
SEC approval of Grayscale’s ETF, which includes ADA, may provide indirect support for price stability amid shifting trader sentiment.
Cardano (ADA) showed signs of recovery after forming a death cross on its hourly chart, typically a short-term bearish signal. The cryptocurrency dropped to $0.536 before reversing direction and climbing toward its 50-hour and 200-hour moving averages, positioned at $0.559 and $0.565.
Despite the death cross suggesting downward momentum, ADA defied expectations by staging a recovery. Hourly charts indicate the token is moving closer to reclaiming both its short-term and long-term moving averages. These averages are often used by traders to determine sentiment shifts.
ADA Sees Relief After Consecutive Declines
Earlier this week, ADA fell due to profit-taking after reaching a high of $0.591. The pullback followed a weekend rally and marked two consecutive days of losses. However, the rebound from $0.536 to above $0.56 suggests buyers are re-entering the market rather than exiting it.
At the time of writing, ADA was at the price of 0.564, up by 2.02% in the last 24 hours. Such a step puts the price at about the level of the 200-hour moving average. The traders are keenly observing the asset to know whether it can maintain its position at the $0.565 mark and move above towards the 0.60 mark.
Support Remains at Local Lows Despite Market Pressure
If ADA faces renewed selling pressure, the nearest support level remains at the recent low of $0.536. A failure to hold above this point may encourage further consolidation. However, the bounce suggests that the bearish tone of the death cross may be losing its influence.
Adding to market optimism, the U.S. SEC recently approved Grayscale’s Digital Large Cap Fund (GDLC) to convert into a spot crypto ETF. The fund includes ADA among other major assets and currently manages around $755 million. This development may contribute to improving overall sentiment toward assets like Cardano.
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