Cardano Forms First Weekly Golden Cross, Sparking 6% Bullish Surge

Cardano ($ADA) has recently formed its first-ever weekly Golden Cross, a significant technical milestone that has sparked optimism among traders and analysts. This pattern, which occurs when the 50-week moving average crosses above the 200-week moving average, is often seen as a strong indicator of a long-term bullish trend. With ADA currently trading around $0.63, there is growing hope that a breakout could propel Cardano back into the top 5 cryptocurrencies by market cap.

The formation of the Golden Cross on the weekly chart is a historic moment for Cardano. This technical pattern is one of the strongest confirmations of a shift from a bear market to a bull market. Following months of price consolidation between $0.50 and $0.66, a recent 6% bullish weekly candle has further boosted market sentiment. If Cardano successfully closes above this range with rising volume, the next upside targets are set at $0.95 to $1.00.

Despite the positive long-term signal, there are short-term risks to consider. Key resistance for ADA now lies between $0.66 and $0.70. A successful weekly close above this range, particularly on rising volume, is crucial to confirm the breakout. If this occurs, analysts have identified the next upside targets at the $0.95 to $1.00 range. This breakout could reignite broader investor interest and potentially position Cardano to reclaim its spot among the top five cryptocurrencies by market cap.

Adding to the bullish outlook, significant whale activity has been observed in recent weeks. Large holders have accumulated 120 million ADA, worth approximately $71 million. Additionally, over $8 million worth of ADA has exited exchanges, reducing potential sell pressure. These movements suggest that institutional investors are preparing for a potential rally. Technical indicators also support this sentiment, with the MACD showing a bullish crossover and the RSI at a healthy 57, indicating moderate bullish momentum with room for further upside before entering overbought territory.