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) has in the last 24 hours recorded an increase in price by over 1.95%, as the asset shows signs of recovery on the crypto market. According to data, Cardano has formed a golden cross on the three-hour chart, the first in the month of August, sparking speculation that the price has bottomed out.
Cardano price finally exits oversold territory
Notably, the 9-day and 26-day moving averages have crossed upward, indicating the formation of a golden cross. For clarity, a golden cross occurs when the short-term moving average crosses above the long-term moving average.
The golden cross is considered a bullish signal for an asset, and its recent formation suggests ADA might witness a breakout.
As of press time, Cardano was changing hands at $0.7403, representing a 2.22% increase in the last 24 hours. The coin registered a spike from a low of $0.7199 to a peak of $0.7424 before stabilizing at the current level.
The upward momentum is likely supported by the Relative Strength Index (RSI) at 46.12, which signals that the coin has exited the oversold territory. It suggests that the price might have bottomed, and the only direction for ADA is up.
However, the continued low volume poses a potential fake breakout risk. Trading volume remains deep in the red zone by 30.74% at $710.93 million.
Analysts eye explosive price targets in current cycle
Market participants appear to be monitoring the price movement before making a serious commitment to the asset. Cardano has failed to reclaim the $1 price level that could serve as a psychological catalyst for increased trading activities.
Despite this slow price movement, Ali Martinez is confident that Cardano's price structure positions it for a breakout. According to the analyst, the asset could experience an explosive move to $3 or $6.25 ultimately in the current cycle.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team