Cardano Forms Death Cross, Signals Bearish Trend Amid $855 Million Liquidations

Cardano’s 4-hour chart shows a bearish death cross, signaling further price decline.

Over $855 million was liquidated from the crypto market, with Cardano facing significant losses.

Ouroboros Leios is set to boost Cardano’s throughput, potentially enhancing scalability significantly.

Cardano’s recent price movements have taken a bearish turn, with the cryptocurrency forming a death cross on its 4-hour chart. This pattern, where a short-term moving average falls below the long-term moving average, signals potential downward momentum. The drop follows a week of overall market declines, with Cardano seeing a notable decrease from $0.888 on Monday to $0.788. Over the week, the price fell from a high of $0.937 on September 19, reaching a low of $0.754 by Thursday.

The broader cryptocurrency market saw significant liquidation activity, with over $855 million wiped off from various assets in the last 24 hours, according to CoinGlass data. Long positions were hit hardest, accounting for $721.54 million of the total liquidations, while shorts made up $133.22 million. This heavy liquidation underscores the volatility in the digital asset market, which has been compounded by broader economic indicators.

Support and Resistance Levels for Cardano

In the short term, Cardano’s price action remains in focus. Analysts expect resistance at the $0.86 level, followed by a stronger level at $0.94. On the downside, support is anticipated at $0.735, which could serve as a critical level for price stability. These levels will be crucial in determining the direction of Cardano’s price as it navigates through the bearish market.

Source: TradingView

Even in light of the existing challenges in the market, the development team of Cardano, under the leadership of Input Output, is still making significant progress towards significant upgrades. Ouroboros Leios protocol is an implementation that aims at enhancing scalability and throughput, thus making massive improvements in the performance of Cardano. The first step of the upgrade, Leios Lite, will offer a throughput 30-55x improvement. These additions are perceived as essential in expanding Cardano to the next level and setting it forth to the next stage.

Prospects: Ouroboros Omega.

In the future, there is also the prospect of other upgrades being undertaken by Cardano, with Ouroboros Omega being the key to improving scalability. Charles Hoskinson, the founder of Cardano, said that Omega will incorporate adaptive security and efficient storage and build on the achievements of the earlier Ouroboros models. These will focus on helping overcome the issue of scalability and also enhancing the interoperability and governance, which will make Cardano successful in the long term.

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