Ethereum News Today: Cardano Forms Golden Cross as ADA Price Stabilizes at $0.87 After 9.82% Weekly Drop

Cardano (ADA) has seen a sharp price pullback in recent days, stabilizing at around $0.87 after briefly reclaiming the $1 level [1]. Despite the weekly drop of 9.82%, technical analysis is highlighting a potential bullish development: a golden cross has formed on the daily chart, as the 50-day moving average crosses above the 200-day moving average [1]. This pattern is historically associated with upward momentum and has previously led to a 238% surge in ADA’s price [1]. Analysts such as Deezy have drawn attention to this setup, suggesting it may signal the beginning of a recovery phase that could push ADA toward $2.52, though this is not guaranteed [1].

In addition to the technical signal, ADA’s price has shown resilience in the short term, gaining 1.57% in the last 24 hours [1]. The token’s performance against Bitcoin is also of interest, with the ADA/BTC pair having seen significant gains in previous market cycles. If altcoin capital flows begin to shift from Bitcoin, analysts suggest ADA could see a fivefold move [1].

The price action is supported by strong fundamentals within the Cardano ecosystem. Developer activity on GitHub remains robust, with the project outpacing Ethereum in terms of code contributions [1]. This continued development, along with the network’s 2,800-day uptime record, demonstrates a level of reliability and decentralization that many in the crypto community view as a key advantage [1].

Trading volume for ADA has also outpaced Binance Coin for eight consecutive days, indicating growing user engagement and liquidity [1]. This increased activity coincides with the upcoming launch of the Midnight sidechain, which is set to airdrop tokens to 33 million wallets. The requirement for ADA to participate in the airdrop could drive additional demand for the token and further boost network usage [1].

While the golden cross and rising volume present a compelling bullish case, the broader cryptocurrency market remains in a mixed state, with ADA underperforming against the overall market index [2]. The token is down 13.70% in ETH terms over the past month, and its market capitalization stands at ETH7,434,600.1419, with a fully diluted valuation of ETH9,178,903.3914 [2]. These figures highlight the potential for future price appreciation should the remaining tokens enter circulation.

Market watchers are closely monitoring whether this cycle will deliver the anticipated altcoin rally, particularly in light of the growing interest in ADA’s technical and fundamental developments. Whale accumulation and improved funding rates have also been cited as indicators of building confidence in ADA’s long-term potential [1]. However, these remain speculative factors, and actual market behavior will determine the asset’s trajectory.

ADA’s 7-day price history reflects the volatility typical of the crypto market, with a 6.7% rise recorded in one 24-hour period [2]. This highlights the need for investors to approach the market with caution and to base decisions on thorough analysis.

Despite the recent downturn, the ongoing development and network activity surrounding Cardano continue to attract attention. The combination of a technical bullish setup and project progress has led some to believe that ADA may be positioning itself for a meaningful price recovery [1].

Source:

[1] Cardano Tanks, Golden Cross Pops: Is This the ADA Price Setup Everyone Waited For? – Blockonomi – (https://blockonomi.com/cardano-tanks-golden-cross-pops-is-this-the-ada-price-setup-everyone-waited-for/)

[2] ADA to ETH: Cardano Price in Ether – CoinGecko – (https://www.coingecko.com/en/coins/cardano/eth)