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Cardano (ADA) has returned to a bearish trend following its failure to breach the $0.77 resistance. The altcoin has been facing a decline, and recent technical indicators suggest that the bearish momentum could continue. 

A surge in negative market signals has contributed to the continued downward movement, potentially pushing ADA below the critical $0.50 support level.

Cardano Investors’ Losses Surge

Currently, Cardano is experiencing the formation of a Death Cross, which marks a significant shift in market sentiment. The 200-day exponential moving average (EMA) recently crossed over the 50-day EMA, signaling the end of the altcoin’s five-month bullish momentum.

This bearish crossover is often seen as a precursor to further price declines, as it suggests that market sentiment is shifting to a more cautious, bearish outlook.

The Death Cross is a classic sign of weakening investor confidence, which has been compounded by poor market conditions. As ADA struggles to regain upward momentum, the bearish trend is likely to persist unless there is a significant change in market sentiment.

Moreover, investors appear to be moving away from ADA, further fueling the decline in its price.

In addition to the Death Cross, the overall macro momentum for Cardano is also showing signs of weakness. The MVRV (Market Value to Realized Value) Long/Short Difference has dipped below the neutral line, indicating that long-term holders (LTHs) are on the verge of losing their profits.

If this trend continues, the profitability of LTHs could shift to short-term holders (STHs), further intensifying the bearish pressure.

A continued drop in the MVRV Long/Short Difference below the zero line would signal that investors’ belief in ADA’s recovery is waning. With LTHs potentially seeing their profits evaporate, there is little incentive for them to hold on to their positions, which could lead to further price declines.

ADA Price Decline Likely

Currently, Cardano’s price is hovering at $0.57, holding above the critical support of $0.54. However, this support is the last line of defense before ADA potentially falls below $0.50. If the price continues its downward trajectory, a drop to $0.50 is a real possibility.

Should the bearish trend intensify, ADA could easily fall through the $0.50 support, extending the losses and pushing Cardano toward $0.46. This would significantly diminish any chances of a recovery and deepen the ongoing downtrend.

The only way to reverse this bearish outlook would be for ADA to secure $0.57 as a support floor. A successful break above $0.63 could restore confidence among investors, which may help avoid further losses and provide a path for recovery.

The post Cardano Death Cross Could Send Price Below $0.5 As Crucial Investors Near Losses appeared first on BeInCrypto.

PancakeSwap’s CAKE token is the market’s top performer today, surging 21% in the past 24 hours.  At press time, the altcoin trades at $2.56.

This rally comes as CAKE records its highest daily spot inflow in a month amid strong demand and renewed investor interest in the token.

CAKE Rockets Higher with $3.37 Million Inflows—Is More Upside Ahead?

CAKE’s price rally is primarily driven by the sharp increase in trading activity on the PancakeSwap decentralized exchange (DEX). Over the past few days, the platform has seen a significant uptick in daily trading volume, outperforming Ethereum’s Uniswap and Solana’s Raydium.

The trend has triggered a surge in demand for the DEX’s native token, CAKE, causing its value to soar by double digits. The uptick in buying pressure is reflected by the token’s spot inflows, currently at $3.37 million, its single-day highest figure in the past month.

When an asset records spot inflows, the number of tokens purchased and moved into spot markets has increased, indicating rising demand. CAKE’s high spot inflows suggest that investors are actively accumulating the asset. If this buying pressure continues, it can drive further price appreciation. 

This is a bullish signal, especially as it is accompanied by positive market sentiment, as shown by the token’s funding rate, which is 0.0021% as of this writing. 

The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts to keep the contract price aligned with the spot market. A positive funding rate means long traders are paying short traders, indicating strong demand and bullish market sentiment for CAKE.

With rising inflows and growing demand, CAKE’s price performance suggests that traders are positioning for further upside. If demand continues at this pace, the token could extend its gains, drawing even more liquidity into PancakeSwap’s ecosystem.

CAKE Holds Strong Above 20-Day EMA—Bullish Momentum Builds

CAKE’s rally has pushed it significantly above its 20-day exponential moving average (EMA) which now forms dynamic support below its price at $1.93.

This moving average measures an asset’s average price over the past 20 trading days. It gives more weight to recent price data, making it more responsive to price movements than a simple moving average. 

When an asset’s price climbs above the 20-day EMA, it signals bullish momentum, suggesting that buyers are in control and the asset may continue its upward trend.

If this trend persists, CAKE could extend its uptrend to $2.90.

On the other hand, a resurgence in profit-taking activity could prevent this from happening. If CAKE demand stalls and it sheds its recent gains, its value could plunge to $2.41. If that support level fails to hold, the token’s price could drop to $2.01.

The post PancakeSwap (CAKE) Soars 21% as Inflows Hit Monthly High, Surpassing $3 Million appeared first on BeInCrypto.

STX is today’s top performer, soaring nearly 20% in the past 24 hours. Alongside the price surge, the token’s trading volume has also spiked, signaling strong interest from investors. 

However, despite the rally, on-chain data reveals a high demand for short positions among traders, suggesting doubts around the longevity of STX’s current uptrend.

Stacks (STX) Jumps 20%, But Bearish Traders Dominate

According to Coinglass, STX’s long/short ratio is currently at 0.97, signaling a preference for short positions among its futures market participants. 

The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is above one, there are more long positions than short ones. This suggests bullish sentiment, with most traders expecting the asset’s value to rise.

Converesly, as with STX, a ratio below one indicates that more traders are betting on a price decline than on an increase. This suggests that many token holders are unimpressed by STX’s double-digit gains over the past day and anticipate a bearish reversal soon. 

Moreover, STX’s overbought Relative Strength Index (RSI) supports this bearish outlook. At press time, this momentum indicator is at 74.35 and on an upward trend.

The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a price decline. Converesly, values under 30 indicate that the asset is oversold and may witness a rebound.

Therefore, STX’s RSI reading confirms that altcoin might be overbought and could witness a price decline in the near term.

Can STX Defy Overbought Signals?

Once buyer exhaustion sets in, STX could shed some of its recent gains. In this scenario, the altcoin’s value could plunge to its year-to-date low of $0.47. 

However, an RSI reading above 70 does not always signal an immediate reversal. Strong bullish momentum can sometimes sustain the rally, pushing prices even higher despite overbought conditions. 

If demand strengthens, STX’s rally could persist, potentially allowing the token to break above the resistance level at $1.07.

The post Stacks (STX) Leads the Market with 20% Jump Amid Bearish Futures Bets appeared first on BeInCrypto.