Cardano Death Cross Sparks Bull Trap Fears Amid Price Surge

Cardano's recent price surge may be short-lived due to a technical indicator known as a 'death cross' forming on its hourly chart. The death cross occurs when the moving average (MA) 50 falls below the MA 200, which has happened for Cardano in the past week. This could signal that the market is experiencing a bull trap, where investors believe prices are rising but are actually falling.

The death cross follows a four-day winning streak for Cardano, during which its price rose to $0.258 on August 22 before retreating. Over the past month, ADA has gained 26.10%, building on July's 17% increase. However, this week's gains have slowed down as most crypto assets experienced profit-taking after last week's surge.

Meanwhile, Cardano builders Input Output announced that Leios, a throughput upgrade, has concluded its public testnet phase. The upgrade lifted Cardano's transaction capacity to six times the current limit without compromising security. In its final days on the testnet, Leios handled 54% of all traffic and moved 18x more transactions than real mainnet traffic.