Analysts Forecast Significant Decline as Golden Cross Begins to Narrow

A brief golden cross might undermine a long-anticipated bullish trend, as a death cross observed during Thursday trading has negatively impacted the short-term outlook for Cardano’s price.

A 10% decline over the week has led the mid-term trend to fall below the long-term average—a technical development that questions ADA’s position as one of the top cryptocurrencies to invest in for June.

The altcoin market has generally weakened amid uncertainties in U.S. trade, a slowing labor market, and Elon Musk’s cautions regarding a possible recession driven by tariffs later this year.

Data from Santiment suggests this could merely be a shakeout of less committed investors, as the Mean Coin Age (MCA) continues to increase—indicating that long-term holders are maintaining their positions.

Cardano Mean Coin Age (MCA). Source: Santiment.

The most dedicated holders of Cardano are choosing not to sell despite short-term fluctuations, thereby reinforcing support levels against the prevailing bearish trend.

Cardano Price Analysis: Are Long-Term Holders Justified in Holding?

Although the recent death cross between the 200EMA and 50EMA indicates that mid-term price movements have weakened compared to the longer-term average, it may not be entirely detrimental at this stage.

SOL / USDT 1-day chart, falling wedge breakout. Source: TradingView, Binance.

A significant green daily candle has maintained the overall falling wedge pattern that has been developing since late 2024, converting its upper boundary from resistance to support despite the ongoing bearish trend.

Consequently, momentum indicators are beginning to show signs of recovery. The RSI has sharply bounced back from oversold levels at 30 to 40, indicating that recent selling pressure may be waning.

Additionally, the MACD line has started to stabilize, creating potential for a trend reversal into a bullish crossover above the signal line—an early indication of a possible upward trend.

Immediate resistance at $0.68 will be crucial. Breaking through this level would extend the falling wedge and propel a move toward its $1.40 technical target—an increase of 110% from current prices.

Failure to breach this resistance could exert pressure on a vital support area at $0.60. A decline below this threshold might necessitate another wedge retest—losing this support would completely invalidate the structure.

In such a scenario, the next significant support is located 22% below current prices at $0.50.

The Solana Ecosystem May Soon Gain Attention

Investors who shifted to Cardano from other Layer-1s may need to reevaluate their choices as the Solana ecosystem finally tackles its primary limitation: scalability.

The narrative has evolved with the introduction of Solaxy ($SOLX), Solana’s inaugural Layer-2 scaling solution.

Solana has historically lacked this feature, which has restricted its DeFi and cross-chain applications—until now.

By processing transactions off-chain and finalizing them on Solana, Solaxy significantly alleviates congestion and reduces transaction fees, while providing seamless interoperability across both blockchains.

With nearly $45 million raised in its ongoing presale, investors are already showing strong support for the project. When demand for altcoins rebounds, it could be positioned to attract new liquidity within the Solana ecosystem.

There are just under 10 days remaining before this phase concludes, unlocking the untapped demand from exchanges.

You can follow Solaxy on X and Telegram, or participate in the presale on the Solaxy website.

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