Cardano (ADA), the world’s 10th largest cryptocurrency by market capitalization, has formed a golden cross pattern for the first time this month. This bullish signal occurs when a short-term moving average, typically the 50-period SMA, crosses above a longer-term moving average, such as the 200-period SMA.
On the hourly chart, ADA’s 50-hour SMA moved above the 200-hour SMA, confirming the golden cross and signalling that short-term selling pressure is easing.
From Early August Weakness to Market Recovery
August opened on a bearish note for Cardano. On August 2, ADA fell to $0.684, marking the lowest point since July’s close. This drop followed a six-day sell-off that also produced a death cross on the four-hour chart, where the 50-period SMA dipped below the 200-period SMA, a traditionally bearish indicator.
However, the trend has shifted. At the time of writing, ADA had risen 5.73% in the past 24 hours to $0.80 as the broader crypto market rallied on growing optimism that Bitcoin and other digital assets could soon be included in 401(k) retirement plans.
Related article: Cardano Set for Vertical Breakout? Analysts Eye $3 and Beyond as Bullish Momentum Builds
Bulls Aim for the $1 Mark
With momentum building, traders are now watching to see if Cardano can reclaim the $1 level it last hit in early March. On March 2, ADA soared to $1.19 after the initial announcement of a crypto strategic reserve.
In July, bulls made another push but fell short at $0.935 on July 21. Today’s recovery rally pushed ADA as high as $0.803, with the daily 200 SMA, a critical momentum gauge, now at $0.7245, firmly below the current price.
The next key resistance levels are at $0.86 and $0.94. Breaking these barriers could pave the way for another test of the $1 mark.
Network Development Adds to Bullish Fundamentals
Cardano’s core development team, Input Output (IO), recently secured approval for a $71 million treasury allocation to fund 12 months of network upgrades. Key projects include Hydra and Project Acropolis, both aimed at boosting scalability, transaction speed, and developer engagement.
These upgrades are expected to increase developer activity and expand real-world use cases for Cardano, potentially driving additional demand for ADA. Combined with the technical strength from the golden cross, these fundamentals may give bulls the push they need to challenge $1 in the coming weeks.
