Cardano's 50-Week Moving Average Crosses Above 200-Week Amid ETF Approval

Cardano's price has recently achieved a significant technical milestone as its 50-week moving average crossed above the 200-week moving average for the first time in an extended period. This crossover is identified by cryptocurrency analyst Dan Gambardello as a major bullish indicator, signaling a potential shift in market sentiment. The development of this crossover took considerable time due to the overextended nature of Cardano’s moving averages during the bear market phase. The 20-week and 50-week moving averages had fallen significantly below the 200-week moving average, requiring a substantial pivot out of bear market conditions before the 50-week could reach the 200-week level again. This technical setup is similar to Bitcoin’s configuration when its 50-week crossed the 200-week during ETF approval periods.

Institutional positioning and ETF approvals are also playing a crucial role in this development. The SEC has approved the conversion of Grayscale’s Digital Large Cap Fund into an ETF, providing institutional access to Bitcoin, Ethereum, Solana, XRP, and Cardano in a single investment vehicle. This approval allows traditional investors to gain exposure to diversified cryptocurrency holdings, including ADA, through institutional channels. Despite the ETF approval, cryptocurrency markets remain under sell pressure, with Cardano price recording red weekly candles alongside other major cryptocurrencies. This price action mirrors the trend of Bitcoin after its ETF approval in January, when the cryptocurrency dropped by 20% in the following days despite the favorable regulatory news.

The approval odds for individual ETFs indicate a 90% probability for ADA, Dogecoin, and Polkadot, suggesting that these altcoins will likely receive institutional access in the near future. Gambardello compares today’s altcoin setup to Bitcoin’s technical setup at the moment of its ETF approval, noting that Bitcoin had already moved past bear market levels and advanced by nearly 200% before extending towards all-time highs. In contrast, altcoins are still around 50% short of previous highs, indicating potential for further growth.

Cardano’s price analysis shows extended consolidation patterns, with the cryptocurrency experiencing months of choppy sideways movement. Gambardello references previous analysis from April 10th when ADA price traded around 60-61 cents, noting the fractal overlay that suggests ADA’s behavior remains consistent with historical patterns involving capitulation, escape attempts, and subsequent choppy consolidation phases. Current Cardano price action continues this established pattern, requiring patience as the cryptocurrency works through technical resistance levels. Weekly chart resistance centers around the confluent moving average area at 65 cents, where the 200-week and 50-week moving averages converge, with the 20-week moving average positioned at 69 cents. The 200-week moving average continues serving as the primary bull market resistance level requiring breakthrough for macro bullish confirmation. ADA’s previous swing low sits around 51 cents, just a few cents below current levels, suggesting potential retesting scenarios remain possible. The analyst monitors momentum oscillators including daily RSI for signs of trend changes while maintaining focus on the critical 65-cent resistance zone.