$ADA Death Cross: Bull Trap Looms as Cardano's Price Surge Halted

Cardano's recent surge in value has been halted by a 'death cross' signal on its short-term charts. This technical indicator, which occurs when the MA 50 falls below the MA 200, is often seen as a bearish sign. The $ADA price skyrocketed to $0.258 on August 22 after reversing an 11-day decline at the start of the month.

The death cross signal has raised questions over whether the recent recovery could be a 'bull trap', where investors are lured into buying before prices drop back down. So far in August, $ADA is up 26.10%, building on a 17% rise in July. At the time of writing, $ADA was up 0.87% in the last 24 hours and up 11% weekly.

Cardano's throughput upgrade, Leios' Earth phase, has concluded after it spent 41 days on a public testnet. According to Input Output, the builder behind Cardano, Leios lifted Cardano's transaction capacity well above the current limit without changing its security model.