Cardano’s “Golden Cross” Signal Could Power Its Return to the Top 5 Cryptos
Cardano ($ADA) is showing renewed signs of strength as it forms its first-ever weekly Golden Cross, a key technical milestone that has stirred hope among traders and analysts. This pattern occurs when the 50-week moving average crosses above the 200-week moving average, often signaling a major long-term bullish trend.
With ADA trading around , the momentum has stirred hope among traders and analysts that a breakout could push Cardano back into the top 5 cryptocurrencies by market cap.
The formation of the Golden Cross on the weekly chart marks a historic moment for Cardano. A Golden Cross occurs when a shorter-term moving average (in this case, the 50-week) crosses above a longer-term one (the 200-week). For technical analysts, this is one of the strongest confirmations of a long-term shift from a bear market to a bull market.
The event follows months of price consolidation for ADA between $0.50 and $0.66. A recent 6% bullish weekly candle has added to the positive market sentiment.
If Cardano successfully closes above this range with rising volume, the next upside targets sit at $0.95 to $1.00.
Despite the powerful long-term signal, the technical outlook is not without its short-term risks. Key resistance for ADA now lies between $0.66 and $0.70. A successful weekly close above this range, especially on rising volume, is needed to confirm the breakout. If that happens, analysts have set the next upside targets at the $0.95 to $1.00 range.
According to Crypto Rose Channel, this breakout could re-ignite broader investor interest and possibly position Cardano to reclaim its spot among the top five cryptocurrencies by market cap.
Adding to the positive outlook, Zhao Lusi highlights significant whale activity in recent weeks. Large holders have accumulated 120 million ADA worth approximately $71 million.
Moreover, over $8 million worth of ADA has exited exchanges, reducing potential . These whale movements suggest that institutional investors are preparing for a potential rally.
Technical indicators also align with this sentiment. The MACD shows a bullish crossover, and the RSI sits at a healthy 57. This reading signals moderate bullish momentum, with room for further upside before entering overbought territory.