Cardano Faces Death Cross as Market Crash Triggers $855M Liquidations

Cardano (ADA) has entered a bearish phase after forming a death cross on the four-hour chart, a technical pattern that occurs when a short-term moving average dips below a long-term moving average. This signal reflects growing selling pressure in the market. ADA experienced a steep decline at the start of the week, falling from $0.888 to $0.788 in Monday’s session. Since reaching a high of $0.937 on September 19, Cardano has been on a downward trend, dropping to a low of $0.754 on Thursday.

The crypto market selloff has been broad-based. According to CoinGlass data, more than $855 million in leveraged positions were liquidated over the past 24 hours. Long traders were hit the hardest, accounting for $721.54 million of the losses, while short positions saw $133.22 million liquidated. This highlights the extreme volatility gripping the market.

In the near term, technical traders are monitoring resistance at $0.86, followed by $0.94 if recovery attempts strengthen. On the downside, support is seen at $0.735, a key level that could determine ADA’s next move. Broader market sentiment remains cautious as macroeconomic conditions continue to weigh on risk assets. U.S. core inflation data showed a 0.3% monthly rise, with annual inflation holding at 2.7%, reinforcing expectations that the Federal Reserve may move toward interest rate cuts in the coming months.

Beyond price action, Cardano’s long-term outlook is tied to ongoing upgrades to its Ouroboros consensus mechanism. The upcoming Ouroboros Leios redesign, starting with Leios Lite, aims to boost throughput by 30–55 times, enhancing scalability. Future plans for Ouroboros Omega promise adaptive security, efficient storage, and improved governance. Founder Charles Hoskinson emphasized that while the path ahead is challenging, these developments could resolve Cardano’s scalability issues and strengthen interoperability through projects like Midnight and partnerchains.

Cardano faces short-term bearish pressure, but ongoing protocol innovations may provide long-term support for ADA’s growth trajectory.