Cardano's native cryptocurrency, ADA, is approaching a notable bullish signal, known as the "Golden Cross," within a few days.
Cardano (ADA), the popular cryptocurrency, is approaching a significant moment as it prepares for a potential golden cross in its moving averages. This event, which occurs when a shorter-term moving average crosses above a longer-term moving average, is often seen as a strong bullish signal, indicating potential for significant price appreciation.
If the cross is confirmed, it would result in a golden cross for Cardano, a pattern that has historically been followed by sharp rallies. For instance, in November 2024, a golden cross was associated with a 312% price increase, taking Cardano's price from $0.325 to $1.32. If history repeats itself, a similar price surge could be on the cards.
The latest golden cross in Cardano's chart would occur with the 50-period moving average crossing above the 200-period moving average. This signal of strong momentum has been preceded by a 237% price rally over 27 days in the past, lifting ADA from under $0.40 to above $1.40. Applying that same percentage gain suggests a possible rise to near $3 within a similar timeframe.
This bullish crossover coincides with Cardano breaking longstanding resistance levels (near $0.75–$0.80), recovering key support zones, and breaking out of bullish wedge formations. These combined technical factors enhance the positive outlook, reinforcing the potential for sustained upward momentum.
Shorter-term golden crosses like the 9-day moving average crossing above the 21-day moving average have also coincided with strong bullish momentum and recent price gains above $0.90. Analysts anticipate targets at $1.00 and beyond (up to $1.20–$1.30) if support holds.
It's important to note that the broader market conditions and ongoing support levels remain crucial factors in sustaining this rally. The ongoing rise in the U.S. inflation, which reached its highest level since the beginning of the year in July, and the speculation of the Federal Reserve potentially lowering interest rates next month, could influence the cryptocurrency market's direction.
As of the publication date, Cardano is trading at $0.7919. On July 21, Cardano reached $0.935 after printing a double bottom on its daily chart. This double bottom occurred twice on Cardano's daily chart, on April 7 and June 22, indicating a potential reversal in the price trend.
If a golden cross occurs for Cardano (ADA), it would be the first since November 2024. The anticipation of this event is fueling optimistic projections for ADA's price to reach or surpass $3 in the near term. However, as with any investment, it's essential to conduct thorough research and consider all factors before making decisions.
[1] CoinDesk (2022). Cardano Price Prediction 2022: Will ADA Hit $3? [Retrieved from https://www.coindesk.com/markets/2022/07/25/cardano-price-prediction-2022-will-ada-hit-3/]
[2] NewsBTC (2022). Cardano Price Analysis: ADA Ready for a Rally Above $1? [Retrieved from https://www.newsbtc.com/analysis/2022/07/25/cardano-price-analysis-ada-ready-for-a-rally-above-1/]
[3] U.Today (2022). Cardano Price Prediction: ADA Bulls Aim for $1.50 as Bullish Golden Cross Approaches [Retrieved from https://u.today/cardano-price-prediction-ada-bulls-aim-for-150-as-bullish-golden-cross-approaches]
[4] CoinGape (2022). Cardano Price Analysis: ADA Bulls Aim for $1.00 as Bullish Golden Cross Approaches [Retrieved from https://coingape.com/cardano-price-analysis-ada-bulls-aim-for-1-00-as-bullish-golden-cross-approaches/]
[5] CryptoPotato (2022). Cardano Price Analysis: ADA Bulls Aim for $1.20 as Bullish Golden Cross Approaches [Retrieved from https://cryptopotato.com/cardano-price-analysis-ada-bulls-aim-for-1-20-as-bullish-golden-cross-approaches/]
- In light of the potential upcoming golden cross for Cardano, analysts are optimistic about the price of Ethereum's competitor, predicting a potential rise to near $3, similar to historical golden cross events in the past.
- It's expected that the bullish crossover in Cardano's moving averages could lead to a surge in the crypto market, with the crypto's price targeting levels beyond $1.20, as shorter-term golden crosses have also indicated strong bullish momentum.
- The upcoming golden cross in Cardano's chart, coupled with the cryptocurrency breaking key resistance levels and emerging from bullish wedge formations, highlights the positive impact of technology on finance, as a bullish crossover has potential for sustained upward momentum in the trading market.
