Cardano rallies 11% in May, but analysts warn of downside risk
The post Cardano rallies 11% in May, but analysts warn of downside risk appeared on BitcoinEthereumNews.com. ADA is currently priced at $0.7677, down 0.04% in the last 24 hours. A bullish MACD crossover has formed, supporting short-term upside. ADA futures open interest dropped 0.43% to $920.12 million. Cardano (ADA) has recorded an 11% monthly gain so far in May, buoyed by a technical bounce from the $0.72 support level. However, underlying market indicators raise caution. Despite recent bullish momentum, ADA continues to struggle within a tight trading range and faces potential bearish pressure from weakening derivatives data. At the time of writing, ADA is priced at $0.7677, reflecting a minor 0.04% decline over the last 24 hours. Source: CoinMarketCap On the 4-hour chart, ADA rebounded from the 200-period exponential moving average (EMA) at $0.74, climbing toward a short-term resistance level of $0.7745. This movement marks the latest attempt to retest the $0.84 resistance zone, which Cardano last approached on 13 May and 23 May. Yet, the upside move has been met with hesitation. The token remains stuck between the key $0.72 and $0.77 levels — a range that analysts are closely monitoring as a “no-trade zone” due to limited directional clarity. Mixed technical signals Currently, ADA is consolidating above the 200-day EMA, with the moving average structure offering some near-term support. The MACD indicator has formed a bullish crossover, further confirmed by positive histogram bars. This setup suggests that buyers still maintain some control over short-term price action. However, not all technical signals are aligned. A bearish crossover between the 50- and 100-day EMAs is beginning to form. If ADA breaks below the 200-day EMA, this crossover could result in a “death cross” scenario — a historically bearish technical pattern that often signals extended declines. Cardano’s ability to maintain momentum will likely depend on whether it can break through the $0.77 resistance barrier. A successful breach…
The post Cardano rallies 11% in May, but analysts warn of downside risk appeared on BitcoinEthereumNews.com.
ADA is currently priced at $0.7677, down 0.04% in the last 24 hours. A bullish MACD crossover has formed, supporting short-term upside. ADA futures open interest dropped 0.43% to $920.12 million. Cardano (ADA) has recorded an 11% monthly gain so far in May, buoyed by a technical bounce from the $0.72 support level. However, underlying market indicators raise caution. Despite recent bullish momentum, ADA continues to struggle within a tight trading range and faces potential bearish pressure from weakening derivatives data. At the time of writing, ADA is priced at $0.7677, reflecting a minor 0.04% decline over the last 24 hours. Source: CoinMarketCap On the 4-hour chart, ADA rebounded from the 200-period exponential moving average (EMA) at $0.74, climbing toward a short-term resistance level of $0.7745. This movement marks the latest attempt to retest the $0.84 resistance zone, which Cardano last approached on 13 May and 23 May. Yet, the upside move has been met with hesitation. The token remains stuck between the key $0.72 and $0.77 levels — a range that analysts are closely monitoring as a “no-trade zone” due to limited directional clarity. Mixed technical signals Currently, ADA is consolidating above the 200-day EMA, with the moving average structure offering some near-term support. The MACD indicator has formed a bullish crossover, further confirmed by positive histogram bars. This setup suggests that buyers still maintain some control over short-term price action. However, not all technical signals are aligned. A bearish crossover between the 50- and 100-day EMAs is beginning to form. If ADA breaks below the 200-day EMA, this crossover could result in a “death cross” scenario — a historically bearish technical pattern that often signals extended declines. Cardano’s ability to maintain momentum will likely depend on whether it can break through the $0.77 resistance barrier. A successful breach…
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