Cardano could be up for a massive price outbreak as an analyst highlights its first-ever bullish cross on the weekly timeframe.
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Cardano may be down 2% in the past 24 hours, but momentum around its price is building up nicely. This comes as an analyst has identified a bullish catalyst, as technical indicators interact perfectly to set up the possibility of a northward trend in the coming days.
First-Ever Golden Cross for Cardano
Specifically, analyst Mr. Brownstone shared in a recent X commentary that Cardano has just seen its first-ever golden cross in the weekly time frame, precisely on the ADA/USD chart. For the uninitiated, this bullish signal flashes when a short-term moving average moves above a long-term moving average (typically between the 50-day MA and 200-day MA).
Interestingly, this suggests that Cardano’s momentum is turning positive in the short term, which usually precedes a significant rally. Many analysts also view the indicator as a buy signal in preparation for a bullish price action.
Meanwhile, the analyst agrees that Cardano’s price is better set up for an uptick above the moving averages. For perspective, ADA trades at $0.597, below both the 50-day and 200-day MA, currently at $0.663 and $0.643, respectively.
This aligns with a previous suggestion from analyst MasterAnanda. Specifically, in an earlier post, he shared that Cardano needs to reclaim the 34-period exponential moving average (EMA34) and MA200 to turn bullish.
Although Mr. Brownstone did not mention any price target for the impending rally, earlier analyses have identified possible targets for Cardano. A recent TradingView commentary from Arman Shaban suggests that ADA is poised for price growth to $1.33, while Dan Gambardello believes $10 is a realistic target for this cycle.
Whale Traction Fuels Positive Momentum
Moreover, whales are back to buying Cardano, another sentiment booster for enthusiasts. After a period of less traction, large holders have acquired 120 million ADA in the past two weeks, Ali Martinez shared in a recent post.
These acquisitions came from the largest ADA whales, specifically from wallet addresses holding between 1 million and 10 million ADA. With the purchases, they now hold 5.5 billion ADA, worth approximately $3.3 billion at the current market price.
It is worth noting that such whale activity typically indicates that market movers remain keen on higher prices for Cardano. It also precedes a price uptrend, with the latest golden cross further fueling the optimism of an ADA bounce soon.
DisClamier:
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