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Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has formed a golden cross on its daily chart.
Cardano's daily moving average (MA) 50 has crossed above the moving average (MA) 200, confirming a pattern known as a "golden cross" — a bullish indicator.
A golden cross indicates a long-term bull market going forward and, as such, traders are on the lookout to see if Cardano will sustain its recent advance. Cardano has enjoyed a price increase since the weekend and might mark its third consecutive day of gains if today closes in green.
ADA initiated a price rebound in mid-October after months of dull trading following the emergence of a death cross pattern in June of this year.
Interestingly, after the formation of its death cross in June, Cardano saw a pump to highs of $0.38 before bears seized control. This precedent raises the question of whether bulls can sustain their present climb and suggests that ADA may see a brief correction before continuing its march higher.
What's next for price?
Cardano's ADA rebounded sharply off lows of $0.35 on Nov. 18, as seen from the long tail on the candlestick. The bulls advanced the rally to today's high of $0.3996, with the next target being the $0.409 high. If bulls can cross this barrier, Cardano might reach $0.46.
Instead, if the price falls below $0.35, it will open the door for a probable drop below $0.32. Such a trend suggests that the ADA price may remain in a range trading between $0.24 and $0.38 for some time.
ADA was up 6.16% in the last 24 hours to $0.395 at the time of writing. In the last seven days, the cryptocurrency has gained 6.79%.
According to the latest CoinShares report, digital asset investment products saw inflows totaling $176 million last week, a continuation of consecutive weekly inflows that have lasted eight weeks. Cardano received inflows, along with other altcoins.