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Cardano has printed its first golden cross of the year, sparking heightened speculation that it will see further price increases from here.
Just days into the year, Cardano has recorded its first golden cross. Notably, this indicator is bullish for the cryptocurrency’s price, as it confirms that positive momentum is predominant and the underlying asset could rally further.
Golden Cross to Propel Cardano Higher?
For the uninitiated, the golden cross occurs when a short-term moving average, usually the 50-period MA, crosses above the long-term 200-period moving average.
Yesterday, the Financial Index highlighted that a golden cross has occurred for Cardano in an X post, leaving enthusiasts optimistic. An accompanying chart shows that it happened on the 2-hour chart on January 4, and ADA has shown upward momentum since then before slowing down in the last 24 hours.
Interestingly, a similar cross is forming on a higher timeframe. Specifically, a TradingView analysis shows that the 200- and 50-period MAs are converging on the 4-hour timeframe, suggesting a potential cross if momentum persists.
Notably, some analysts argue that a golden cross is a lagging indicator, confirming the start of a trend rather than pre-announcing a market shift. This suggests the uptrend may have occurred, especially given that the crossover took place on lower timeframes. However, golden crosses on higher timeframes would confirm a stronger bullish momentum.
Would ADA Price React?
Meanwhile, ADA trades at $0.41, down nearly 3% over the past 24 hours. While it has pulled back slightly in the past day, the token has spiked by 16.8% in the last week and an impressive 23.5% since the start of the year.
The daily RSI, at 56.09, shows strong market momentum. Further, it suggests that ADA has more room to expand, as it remains well below the overbought territory of 75 and above. However, trading volume is down 4.4% over the past 24 hours to $859 million, suggesting reduced market trading activities involving ADA.
If sentiment remains positive and broader market conditions remain stable, Cardano could chase higher resistance levels. Recent analysis also backs this sentiment, predicting new all-time highs for ADA this year.
One such outlook comes from xAI’s chatbot Grok, which predicted that ADA would hit $3.5 by the end of 2026. Factors that would fuel this 753% rally include clearer regulations, positive ecosystem developments such as the Midnight mainnet launch and the upcoming Ouroboros Leios upgrade, and a bullish macroeconomic environment.