coinpedia.org
-
A rare technical pattern is forming on Cardano’s chart that has preceded major ADA rallies in past cycles.
-
The analyst who flagged ADA’s recent move says the setup could point to $1.30 or even a run toward $2.
-
The outlook is focused on 2026, with signals suggesting this may be a longer-term cycle shift, not a short-term trade.
Cardano is moving back into the spotlight. As 2026 begins, ADA has started to climb – up about 25% since the beginning of the year – but traders say the bigger story is what’s forming on the charts, not the price alone.
A recent analysis from the Discover Crypto YouTube channel points to a technical setup that has previously appeared before Cardano’s largest rallies. It’s a pattern that doesn’t show up often, which is why it’s starting to draw attention.
A Different Kind of Golden Cross
The analysis highlights a Golden Cross on the MACD, which happens when short-term momentum overtakes the longer-term trend.
As explained in the video, “it’s when a short-term moving average rises above a long-term moving average.”
But this isn’t a clean, explosive breakout. Instead, the two MACD lines are moving closely together. The analyst describes this behavior as the lines “slithering together,” a setup that has historically led to stronger follow-through moves for ADA than typical crossovers.
The Signal Behind Cardano’s Past Rallies
What strengthens the case is a 3-day bullish divergence forming at the same time. In simple terms, price makes lower lows while momentum, measured by RSI, makes higher lows.
According to the analyst, “3-day bullish divergences have historically just been the best reverse indicator that I’ve seen this cycle.”
He adds that the same signal has appeared across Bitcoin, gold, and major stock indexes.
Cardano’s previous rallies tied to this setup saw gains of 229% and 359%, making it a key reference point for longer-term traders.
Also More: “Time to Be Important”: Mike Novogratz Issues Wake-Up Call for XRP and Cardano
ADA Price Levels Being Watched
Based on those past moves, two price paths stand out.
A more conservative scenario points toward $1.28-$1.30, a level Cardano has already tested in earlier cycles. A stronger expansion, assuming momentum continues to build, could push ADA toward $1.94, just under $2.
The analyst has been consistent about accumulation levels, saying, “33-cent Cardano, that is the line in the sand.”
Looking Toward 2026
The focus is on cycle timing.
As the analyst puts it plainly, “I’m very, very bullish heading into 2026.” Whether Cardano follows the conservative path or pushes higher, the current setup suggests ADA may be entering a phase that long-term holders have been waiting for.