With a 6.4% increase in the past 24 hours, current technical signs indicate that Cardano's (ADA) fortunes are on the rise. Traders are paying attention to a very rare signal on the ADA/USD chart: the weekly golden cross, a strong indicator that often signals a sustainable growth trend in the near future.
First weekly golden cross
Analysis from expert Brownstone shows that Cardano has just recorded its first weekly golden cross in its history. This is a special event when the 50-week moving average (MA) crosses above the 200-week MA, a strong indicator that buyers are gradually gaining dominance after a long period of sideways market movement. This could signal a change in market momentum, opening up bullish prospects in the near future.
Currently, the price of ADA is trading at $0.63, lower than both the 50-day MA ($0.66) and the 200-day MA ($0.64). This gap indicates that the buying side needs to bolster its forces to push the price back above important levels. However, the weekly golden cross creates a wave of expectation for a notable recovery in the near future.
'Has anyone seen that Cardano just recorded its first weekly Golden Cross?'
Before a true uptrend forms, Cardano needs to regain important price levels such as the 34-period EMA and the 200-day MA. These are support levels that many traders consider important checkpoints in determining the next direction of the market.
If ADA can close above $0.64, this could attract additional investors and open up the opportunity for the price to continue rising. Conversely, if the price drops below $0.59, selling pressure could intensify, pushing the price down and making it difficult for the short-term uptrend.
Whales reappear and accumulate ADA
An important factor that cannot be overlooked is the strong return of 'whales' in the Cardano market. According to analysis from Ali Martinez, large investors have accumulated approximately 120 million ADA in just the past two weeks. These addresses, each holding between 1 million and 10 million ADA, currently own a total of 5.5 billion ADA, worth about 3.4 billion dollars at current prices.
The emergence of buying whales is often seen as a signal that large investors are very confident in the price outlook of Cardano in the coming time. However, this can also pose risks, as if these whales decide to take profits, it could lead to unexpected reversals and create significant selling pressure in the market.
'Whales have bought over 120 million Cardano $ADA in the last two weeks!'
ADA Price Forecast
The weekly golden cross of Cardano is certainly a positive bullish signal, but for this trend to be truly confirmed, ADA needs to surpass short-term resistance levels. Traders are paying attention to the price level of $0.66 on the daily chart as an important barrier. If ADA closes above this level, there is a high likelihood of a strong price increase.
However, those who have entered positions may want to set stop-loss orders below $0.59 to guard against rejection or unexpected reversals.
Some analysts have set specific price targets for the upcoming weeks. Some predict that ADA could reach $1.33, while more optimistic individuals believe the price could soar to $10 during this cycle. CoinCodex's price forecast suggests that ADA could increase by 25.8%, reaching $0.79 by August 10, 2025.
Currently, technical indicators are leaning towards a slight downtrend, while the Fear & Greed Index is currently at 71, reflecting a greedy market sentiment. Cardano has had 14 out of the last 30 days end in the green, with a volatility of around 7.21%, indicating a positive outlook in the short term.
In summary, the weekly golden cross is a positive signal for Cardano, but for this upward trend to materialize, ADA needs to surpass short-term resistance levels and maintain upward momentum in the context of the overall market. Although there are many supporting factors, developments in the global market and moves from the 'whales' can still create significant volatility in the short term. Investors need to closely monitor and have strategies appropriate for each stage of the market.