Disclaimer: The opinions expressed by our editors are their own and do not represent those of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not responsible for any financial losses incurred while trading cryptocurrencies. Do your own research by contacting financial experts before making any investment decisions. We believe all content to be accurate as of the date of publication, but some 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 50 daily moving average (MA) rose above the 200 moving average (MA), confirming a trend known as the “golden cross” – a bullish indicator.
A golden cross indicates a long-term bull market and, as such, traders are on the lookout to see if Cardano will maintain its recent advance. Cardano has benefited from a price increase since the weekend and could mark its third straight day of gains if today’s close is in the green.
ADA initiated a price rebound in mid-October after months of sluggish trading following the emergence of a death crossover pattern in June of this year.
Interestingly, after forming its death cross in June, Cardano saw a rise to a high of $0.38 before bears took control. This precedent raises the question of whether bulls can maintain their current rise and suggests that ADA could see a brief correction before continuing its advance.
What’s next for the price?
Cardano ADA has rebounded strongly from the November 18 low of $0.35, as seen in the long tail of the candlestick. The bulls advanced the rally to today’s high of $0.3996, with the next target being the high of $0.409. If the bulls manage to break this barrier, Cardano could reach $0.46.
Instead, if the price falls below $0.35, it will open the door for a likely decline below $0.32. Such a trend suggests that ADA price could remain in a range between $0.24 and $0.38 for some time.
ADA increased by 6.16% in the last 24 hours to $0.395 at the time of writing. Over the past seven days, the cryptocurrency has gained 6.79%.
According to the last Coin Shares report, digital asset investment products saw inflows totaling $176 million last week, a continuation of consecutive weekly inflows that lasted eight weeks. Cardano has received inflows, along with other altcoins.