Quick Summary
- Cardano’s Golden Cross has reversed into a looming Death Cross in just 3 weeks.
- ADA trades at $0.67, hovering near a crucial support level of $0.66.
- A confirmed Death Cross could push prices toward $0.60.
- Despite technical weakness, long-term holders are refusing to sell.
- On-chain metrics show Mean Coin Age increasing, signaling investor confidence.
Golden Cross Turns Into Death Cross
Just three weeks ago, Cardano (ADA) flashed a promising Golden Cross, where the 50-day EMA moved above the 200-day EMA—a traditionally bullish signal. However, this optimism has faded fast.
Now, the 50-day EMA is on the verge of falling below the 200-day EMA again, signaling a Death Cross—a bearish technical pattern that could accelerate sell pressure.
What’s surprising?
This Golden Cross lasted even shorter than ADA’s previous Death Cross, which held for over a month. The sudden reversal has caught traders off guard.
Cardano MCA. Source: Santiment
ADA Price Teeters Near Key Support
At the time of writing, Cardano is trading at $0.67, barely above its critical support at $0.66. Should it fall below this level, the next stop could be $0.60, a price zone not seen in over six weeks.
A confirmed Death Cross + breakdown below $0.66 could attract automated sell-offs from bots and momentum traders, making the decline faster and steeper.
Holders Stay Strong: Mean Coin Age Tells the Story
While the charts paint a bleak picture, on-chain data tells a more resilient story. According to Santiment, Cardano’s Mean Coin Age (MCA) is trending upward—a sign that long-term holders are not moving their coins.
This metric signals confidence, not fear.
“Long-term holders are choosing to maintain their positions rather than capitulate to selling pressure.”
In a market driven by emotion and trend-following, this behavior serves as an anchor, preventing extreme price drops.
Why This Divergence Matters
This mismatch between technical weakness and on-chain holder strength creates a unique setup:
- Bearish traders may anticipate breakdowns based on chart patterns.
- Committed holders provide resistance against panic selling.
- Such a divergence often precedes surprise reversals, especially when macro trends turn in favor.
What Happens If $0.66 Breaks?
Breaking below the $0.66 level would:
- Confirm the Death Cross pattern.
- Invite algorithmic selling.
- Push ADA down to $0.60, or potentially lower.
- Possibly break the confidence of short-term retail traders.
However, strong on-chain fundamentals may help prevent a catastrophic drop, unless broader crypto markets also tumble.
Conclusion: ADA in Crosshairs of Traders and Algorithms
Cardano is now at a technical crossroads. The emergence of a Death Cross combined with looming support breakdowns suggests more turbulence ahead. But the resilience of long-term holders, reflected in rising Mean Coin Age, may act as a backstop for ADA.
In the coming days, keep a close eye on:
- EMA crossovers
- $0.66 support zone
- Holder activity on-chain
If ADA manages to hold the line, we could see a bounce. If not, prepare for a trip toward $0.60 and a test of trader patience.