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Cardano (ADA) might be on the verge of a moving average crossover, with eyes on a potential golden cross on its daily chart.
Cardano's 50-day SMA looks to have turned upward and is set to cross the 200-day SMA in the coming days, resulting in a golden cross if confirmed, a pattern in which a short-term moving average crosses above the long-term moving average, indicating potential bullish momentum.
Cardano was recently changing hands at $0.7919, in line with the crypto market recovery, as a tepid rise in the prices of goods tempered concerns about price pressures. Underlying U.S. inflation rose in July to its highest level since the beginning of the year.
The core consumer price index, which excludes the volatile food and energy categories, rose 0.3% from June, according to Bureau of Labor Statistics data released Tuesday. That was consistent with economists' estimates. On an annual basis, it rose to 3.1%. However, traders are increasingly betting that the Federal Reserve might lower interest rates next month.
What comes next?
In the coming days, eyes will be on a moving average crossover for Cardano (ADA). A golden cross will form if the 50-day SMA crosses above the 200-day SMA, or a death cross otherwise.
Cardano last witnessed a golden cross in November 2024, coinciding with a 300% price increase. ADA rose from $0.325 in early November 2024 to reach $1.32 on Dec. 3 of the same year, marking a 312% increase.
The market will be watching to see if history will repeat itself in the event of a bullish golden cross. If the market follows a similar pattern, a 312% surge from the current price of $0.79 would produce a target of $3.25.
Cardano printed a double bottom on its daily chart by touching $0.51 twice on April 7 and June 22, which bolstered bulls, with the ADA price reaching $0.935 on July 21. If bullish momentum returns, Cardano might eye a move toward $1.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team