Cardano (ADA), currently ranked as the 10th-largest cryptocurrency by market cap, has challenged bearish expectations in July. In late June, ADA formed a death cross on its weekly chart a pattern where the shorter-term moving average, such as the 50-week MA, drops below the longer-term 200-week MA. This signal typically forecasts prolonged downward pressure. However, Cardano defied the pattern with an unexpected price rebound.
Strong July Performance Defies Bearish Signal
Contrary to the typical outcome of a death cross, ADA reversed course and began climbing in the final week of June. This upward momentum aligned with a broader recovery across the altcoin market. Over four consecutive weeks, ADA gained traction, eventually peaking at $0.935 on July 21. Although the price faced resistance at that level, ADA maintained an impressive 42% gain for the month, according to TradingView data.
ADA/USD Chart, Source: TradingViewÂ
Despite the monthly surge, ADA has encountered short-term selling pressure. As of the latest data, the token fell 0.23% in the past 24 hours, trading at $0.807. On a weekly basis, ADA dropped 5.13%, wiping out its seven-day gains amid a broader cryptocurrency market sell-off.
Short-Term Bearish Signal Reemerges
ADA has now formed a death cross on its hourly chart, suggesting that bearish forces are attempting a comeback. If the price drops from current levels, it could fall to $0.74, aligning with the 200-day simple moving average (SMA). Further declines may push ADA toward $0.70 or even $0.66, where the 50-day SMA sits.
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However, if buyers regain momentum and push the price above $0.86, ADA could target $0.90 and then $0.94. Breaking through this resistance zone may pave the way for a climb to $1.02, with a potential stretch toward $1.17. These levels will be critical for the bulls to regain full control and challenge previous highs.
