Cardano's Recent Surge Hits Death Cross Signal

Cardano's recent surge has been met with a bearish chart signal, raising questions about its sustainability. The cryptocurrency saw a significant increase in price over the past week, rising for four consecutive days after reversing an 11-day decline at the start of August.

The ADA price skyrocketed to $0.258 on August 22, only to retreat afterwards. However, this recent recovery has been accompanied by a death cross signal on Cardano's short-term charts, specifically the hourly chart, where the MA 50 fell below the MA 200.

This short-term death signal puts traders on alert as they watch for signs that the recent rebound can hold. 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.

Rate expectations are moving against the market rally as traders added to bets on a rate increase, against the lower-yield backdrop that lifted crypto assets in the past week. The Federal Reserve Chair Kevin Warsh delivers his first Jackson Hole keynote as chair on Friday, weeks before the Sept. 15-16 rate decision.

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