Cardano (ADA) had a strong week, gaining nearly 20% and pushing close to the $1.00 mark. The token is now trading just under that key psychological level, and one chart signal could bee interesting for traders.
According to analyst Lark Davis, ADA has just broken a long-term resistance line that has been in place since December 2023. At the same time, the 9-day moving average has crossed above the 21-day moving average – a pattern known as a golden cross.
What you'll learn 👉
Why the Golden Cross Matters
The golden cross is a bullish signal that often marks the start of an uptrend. In ADA’s case, this is not the first time it has appeared. The last golden cross, which formed in late 2023, triggered an explosive 236% rally, sending Cardano from around $0.30 to nearly $1.00 within weeks.
Now, traders are watching closely to see if history might repeat itself.
Cardano Chart Setup
On the weekly chart, ADA is trading around $0.95. The price has successfully pushed above a yellow resistance trendline that capped growth for more than half a year. That breakout alone is a positive signal, as it suggests the downtrend that dominated much of 2024 may finally be over.
The golden cross adds more strength to this picture. When the short-term moving average crosses above the longer one, it often reflects growing momentum and renewed buyer interest. In Cardano’s case, the last time this exact setup occurred, the rally was sharp and decisive.
Read also: Kaspa (KAS) vs Cardano (ADA): Which Is Going to $5 First?
What Traders Are Watching Next
If ADA can hold above $0.90 and break past $1.00, analysts believe the door could open to a larger bullish move. The next major resistance sits between $1.20 and $1.30, while a strong continuation could set ADA up for a much bigger climb.
Still, nothing is guaranteed. If Cardano fails to hold support near $0.90, the move could lose momentum and retest lower levels before trying again.
For now, though, ADA looks bullish. With a golden cross and a breakout above long-term resistance, traders are asking the same question as Davis: will Cardano give us another triple-digit rally like it did last time?
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