Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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.
Tomiwabold OlajideADA 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.
Alex Dovbnya
Dan Burgin
Vladislav Sopov