Cardano (ADA) Shrugs Off Death Cross Signal in Surprise Recovery

Cardano (ADA) just pulled off something pretty unexpected. A death cross showed up on its hourly chart - usually a red flag that screams "sell now" - but ADA didn't get the memo. Instead of tanking further, it bounced hard from $0.536 lows and started climbing back toward its hourly moving averages at $0.559 and $0.65.

Here's the thing about death crosses: they happen when the 50-hour moving average drops below the 200-hour one. While hourly death crosses aren't as scary as daily or weekly ones, they still make traders nervous and often trigger sell-offs.

But Cardano's doing the opposite. The price hit bottom and said "nope, not today," bouncing right back up. This tells us that traders aren't buying into the bearish signal. Bulls might be stepping in to prove the death cross wrong by taking back control.

Cardano (ADA) Shows Real Recovery Signs

Right now, ADA is up 10.88% in the last 24 hours, sitting at $0.5974. That's a solid comeback after two rough days at the start of the week. The drop happened because people took profits after ADA hit $0.591 on Monday following a weekend rally.

The fact that it's bouncing back suggests people are buying the dip instead of panicking. Smart money often sees these temporary drops as opportunities rather than reasons to run.

The big question now is whether ADA can break above those hourly moving averages at $0.559 and $0.565. If it does, we might see it push past $0.60. But if things go south, that $0.536 support level will get tested again.

What's Next for ADA?

There's some good news floating around that could help. The SEC just approved Grayscale's Digital Large Cap Fund (GDLC) to become a spot crypto ETF. This fund manages $755 million and includes Cardano along with Bitcoin, Ethereum, XRP, and Solana.

This kind of regulatory approval usually brings more institutional money into the game, which is exactly what crypto needs right now. More institutional interest means more buying pressure, and that's good news for ADA holders.

Bottom line: Cardano's showing it won't go down without a fight. The death cross was supposed to signal trouble, but ADA's proving that sometimes the market has other plans. Whether this recovery sticks will depend on if bulls can keep pushing above those key resistance levels.