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Cardano, the 10th largest cryptocurrency by market capitalization, has created a golden cross pattern for the first time in August. This bullish pattern occurs when the short term moving average, typically the 50 period SMA, crosses above the longer term, usually the long-term moving average (the 200 period SMA).
The 50-hour SMA crossed above the 200-hour SMA, confirming a golden cross on the hourly chart, indicating that short-term selling pressure is waning.
August began on a shaky note for Cardano, with its price hitting a low of $0.684 on Aug. 2 following a six drop, which spanned from July's close. Amid the sell-off, Cardano registered a bearish death cross on its four-hour chart, a pattern which occurs when 50 period SMA falls below the 200 period SMA.
At press time, ADA was up 5.73% in the last 24 hours to $0.80 as the broader crypto market extended its rally early Friday on optimism that Bitcoin, and other digital assets could soon come to 401(k) retirement plans.
Cardano to $1 next?
Amid the recent surge on the crypto market, eyes are on Cardano to see if it would once again reach the $1 level it last attained in early March this year. Cardano skyrocketed to a high of $1.19 on March 2 following the initial announcement of a crypto strategic reserve.
Bulls attempted to repeat the same feat last month but stopped short at a high of $0.935 on July 21. The recent Cardano recovery reached a high of $0.803 early today, with the daily SMA 200 — a critical level to gauge price momentum — currently at $0.7245, now well surpassed.
The next resistance levels en route to $1 lie next at $0.86 and $0.94. In positive fundamentals, Cardano’s core development team, Input Output (IO), recently secured approval for a $71 million treasury allocation to fund 12 months of network upgrades.
Key projects include Hydra and Project Acropolis, with such implementations expected to increase developer activity and new use cases on the Cardano network, contributing to demand for ADA.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team