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Cardano’s
triggered a bearish technical signal known as the “death cross” on its one-hour chart on August 21, 2025, as the short-term moving average crossed below the long-term moving average. This crossover, often seen as an indicator of diminishing bullish momentum, occurred amid a sharp price decline from $0.987 to $0.837 before a partial rebound to $0.863. Weekly losses approached 8.15%, adding to concerns about short-term weakness [1].The sell-off in ADA coincided with broader market pressures driven by macroeconomic developments and Federal Reserve commentary. A higher-than-expected July wholesale inflation report fueled concerns that rate cuts may be delayed, while Fed minutes confirmed policymakers viewed both inflation and labor risks as significant. As a result,
fell below $112,000—a sharp drop from its August 14 peak of $124,533—which amplified selling pressure across altcoins, including ADA [1].Despite the bearish signal, on-chain activity showed signs of selective accumulation. Analysts noted that large holders—commonly referred to as “whales”—had reportedly accumulated 100 million ADA in 24 hours, suggesting a degree of confidence among major investors amid the decline. Such accumulation, if confirmed, could support a rebound in the near term, particularly if selling pressure begins to wane [1].
Traders are advised to monitor key technical and macroeconomic indicators. Volume levels during the rebound appear to indicate limited conviction, and the death cross should not be used in isolation to make trading decisions. Additional tools such as RSI and on-chain flows are critical for confirmation. Moreover, Federal Reserve Chair Jerome Powell’s upcoming speech remains a pivotal event that could shift market sentiment and influence ADA’s trajectory [2].
While the hourly death cross signals short-term bearish momentum, it does not necessarily imply a long-term breakdown. Long-term trends are typically shaped by daily or weekly moving average crossovers and broader macroeconomic shifts. Investors are encouraged to use stop-loss orders, adjust position sizes, and remain vigilant about both technical and macroeconomic developments [1].
The current environment for ADA reflects a delicate balance between bearish technical signals and potential support from whale activity and macroeconomic developments. As the market awaits further clarity from the Fed and observes on-chain behavior, the next few days will be crucial in determining whether ADA can regain momentum or face further downward pressure [1][2].
Source:
[1] The Economic Times – [https://m.economictimes.com/crypto-news-today-live-21-aug-2025/liveblog/123417173.cms](https://m.economictimes.com/crypto-news-today-live-21-aug-2025/liveblog/123417173.cms)
[2] The Economic Times – [https://m.economictimes.com/crypto-news-today-live-20-aug-2025/liveblog/123393863.cms](https://m.economictimes.com/crypto-news-today-live-20-aug-2025/liveblog/123393863.cms)

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