Cardano formed a golden cross on the weekly chart, a pattern that previously led to a 236% rally.
ADA trades at $0.9105 after a 1.51% daily drop, with intraday resistance near $0.96.
Circulating supply is at 79%, limiting inflation and supporting ADA’s long-term market structure.
Cardano (ADA) is showing contrasting signals as the asset has broken long-term resistance while facing short-term selling pressure near $0.91.
Technical Breakout and Golden Cross
Cardano recently delivered a strong technical signal by breaking above the descending resistance that had restricted its price since December. This action accompanied the creation of a golden cross of the 9 and 21 moving averages on the weekly graphics.
Well-known crypto commentator Lark Davis drew attention to this on social media, saying that the earlier golden cross led to a 236 percent increase. This historical precedent also begs the question of whether ADA can follow a similar bullish case over the next few weeks.
https://twitter.com/TheCryptoLark/status/1956717396909003245
Momentum indicators confirm that the weekly breakout candle carried nearly a 19% increase, with buyers reclaiming moving averages as support. Such structural changes point toward the end of an accumulation phase and a potential start of a new uptrend.
Current Market Conditions
Cardano has shown vulnerability in the short-term, with the price at the time of writing at $0.9105 and a 1.51% daily loss. During the intraday session, ADA climbed to nearly $0.960 before profit-taking triggered the price to dip towards the support area of about $0.910.
The daily turnover fell to 2.94 billion dollars which was a record and was more than 26% lower than in the past sessions. Depressed size indicates weak liquidity and reduced buyer involvement which may impede short-term price resurgence initiatives.
The present stabilization along the bottom of the interval range is an indication of rigidness among market contestants, with sellers momentarily outbalancing the buying pressure at these points.
Supply Dynamics and Future Levels
The circulating supply of Cardano is 35.6 billion ADA, with a total supply of 45 billion cryptocurrencies, which creates 79% of tokens circulating. Such a seasoned distribution model can contain future inflation, which can be a stabilizing factor to long- term holders.
Technicals are, however, important to short-term price direction. A fall below the $0.90 level would open ADA to additional losses on the downside towards $0.88-$0.85. On the other hand, a recovery greater than $0.95 would give a fresh impetus to the buyers to re-test the $1.20-$1.40 band recommended by historic breakout.
Cardano will still be driven by broader market conditions, such as the dominance and general liquidity flows of Bitcoin. Key in replicating past rallies is momentum above the recent breakout levels.
