Cardano (ADA)’s price flashed a ‘Death Cross’ over the weekend – a bearish technical indicator signaling downward price momentum and a potential incoming tailspin.
This comes two weeks after the US Securities and Exchange Commission (SEC) sued Coinbase, naming ADA as a security in the process.
- The Death Cross occurs when an asset’s 50-day simple moving average crosses beneath its 200-day moving average.
- According to TradingView, nearly all of Cardano’s moving average indicators are flashing a “sell” signal. The last time the asset flashed a death cross, in particular, was in December 2021 – the onset of a year-long downtrend for both Cardano and all of crypto.
- The asset later flashed its counterpart signal – a ‘Golden Cross’ – in March, as the collapse of numerous banks triggered a rush of capital into Bitcoin and other digital assets.
- Though considered unreliable on its own, the death cross arrives just as the SEC filed lawsuits against two of the world’s largest crypto exchanges, Binance and Coinbase.
- In the latter lawsuit, ADA was named a security alongside a dozen other crypto assets, most of which have suffered especially strongly after the case was filed. Since then, ADA is down ~30%, trading for $0.25 apiece.
- The ongoing pressure against altcoins has driven up Bitcoin dominance this month, which reclaimed 50% on Monday for the first time since 2021. Bitcoin billionaire Michael Saylor has predicted that the regulatory crackdown on competing coins could ultimately drive the asset’s dominance beyond 80% in the long term.