Cardano ($ADA ), the tenth largest cryptocurrency by market capitalization, is on the verge of receiving a technical signal on the chart as broader market weakness intensifies. On the hourly chart, $ADA is approaching.
from the death cross, a bearish indicator formed when the short-term moving average of 50 hours falls below the long-term moving average of 200 hours.
While this pattern is commonly used on daily or weekly charts, it can also be observed on shorter time frames, indicating continued selling pressure in the near term.
The recent decline of #ADA coincides with a broader retreat in the cryptocurrency market, where both Bitcoin ($BTC ) and Ethereum (#ETH ) have lost some of their strength over the past twenty-four hours. As of the time of publication, the price of ADA is trading at $0.555, down more than 5% over the day and 8% over the week.
If the decline continues, ADA may find its next support at $0.51. If the price of ADA falls below this level, it could drop to $0.40. On the other hand, if buyers push above $0.60, the price of ADA may reach $0.69 instead of $0.78.
The cryptocurrency market is in a downturn
The cryptocurrency market experienced a significant downturn in early Thursday trading, resulting from profit-taking after a previous rise during the week, amid investors assessing macroeconomic concerns. Cardano was not immune to the market decline, which led to a loss of $228 million in leveraged positions in the market.
Powell testified before the Senate Banking Committee on Wednesday, emphasizing the central bank's primary goal of keeping inflation under control.
Jobless claims fell to 236,000 applications for the week ending June 21, below the Dow Jones economists' expectations of 244,000 applications.
Investors are awaiting the release of the Personal Consumption Expenditures Index for May on Friday. Powell stated on Tuesday that the preferred inflation gauge of the Federal Reserve is expected to rise to 2.3%, while the core measure, which excludes food and energy, is expected to rise to 2.6%. This represents an increase from 2.1% and 2.5% respectively in April.