Cardano ADA Price Hits Golden Cross as Institutional Buying Drives 12% Weekly Gain

A notable technical formation has emerged on Cardano’s ADA price chart as the 50-day simple moving average (SMA) has crossed above the 100-day SMA, creating a golden cross on the daily chart [1]. This pattern, historically regarded as a bullish signal in financial markets, is now drawing attention from traders and investors, many of whom are recalling the 232% surge that followed the last golden cross event [1].

ADA has shown a strong upward move in recent weeks, climbing 12% in a single week to reach $0.822 [1]. The market cap of Cardano has expanded to $36.9 billion, reflecting renewed interest in the asset. The golden cross is seen as a key technical catalyst, with traders interpreting it as a potential sign of a sustained uptrend. ADA’s price remains above the $0.80 level, indicating strong buying pressure and buyer conviction [1].

Large institutional investors have been accumulating ADA in significant volumes, with 200 million tokens added to whale wallets over just two days [1]. This accumulation underscores growing confidence in the asset and its potential for future gains. Simultaneously, the derivatives market has shown increased activity, with futures open interest rising from $238 million to $1.41 billion since late 2024 [1]. This suggests traders are positioning for further upside in ADA’s price.

Looking ahead, major upgrades to the Cardano network are expected to play a key role in its price action. The upcoming Midnight upgrade is anticipated to enhance the platform’s privacy and scalability, potentially attracting more developers and users. Additionally, speculative excitement has been fueled by rumors of potential ETF approvals for ADA, although no official announcements have been made [1].

Analysts have proposed various price targets based on the golden cross and current market conditions. Some suggest ADA could reach $1.35 in the short term if it breaks out from the falling wedge pattern. In a strong bull market scenario, further gains of up to $5 have been forecast [2]. From the current price, such movements would represent gains of over 500%, though these remain speculative and contingent on broader market dynamics [2].

Cardano’s fundamentals also appear to be aligning with its technical outlook. The DeFi ecosystem on Cardano holds $325 million in value locked, and the Midnight Airdrop campaign has generated increased engagement from the community. With over 3.1 million holders currently invested, market expectations for an upward shift in price are rising [2]. The alignment of technical and fundamental factors is seen as a strong setup for ADA in the near term [2].

While other altcoins like Polygon are also showing signs of recovery, Cardano’s price action appears more defined in the current market cycle. Polygon’s indicators such as RSI and MACD show bullish divergence, but ADA’s technical and fundamental outlook is more advanced at this stage. This has led to speculation that Cardano could outperform other altcoins, especially if the golden cross is confirmed and the $1.35 level is broken [2].

As the 50-day SMA approaches the 200-day SMA, market participants are closely monitoring the potential formation of a second golden cross. If confirmed, it could mark a pivotal turning point for ADA and potentially set the stage for further price appreciation. Given the historical significance of the golden cross in traditional markets, its potential impact on the crypto space is being watched with cautious optimism [1].

Source: [1] Cardano’s Daily Golden Cross Signals Potential 232% Surge (https://cryptonewsland.com/cardanos-daily-golden-cross/)

[2] Cold Wallet's Plus Wallet Acquisition Adds More Users (https://u.today/cold-wallets-plus-wallet-acquisition-adds-more-users-cardano-price-target-stays-strong-pol-outlook)