- Cardano price surges to highest since March after breaking multi-month resistance, printing a three-day uptrend.
- Classic bullish moving average crossover, “Golden Cross”, adds strength to ADA’s upside bias.
- Overheated Stochastic suggests a pause before the next rally, potentially targeting key November resistance.
- Clear breakout above key resistance signals reversal of ADA’s pullback from late 2024, despite interim consolidations.
Cardano (ADA) price rose 10% intraday to hit its five-month-high, briefly topping $1.0189 before easing to $0.9865 during a three-day rally on Thursday.
ADA’s latest run-up takes clues from a clear breakout of an 8.5-month-old descending resistance line, now support. Adding strength to the upside bias is the “Golden Cross”, a classic bullish moving average crossover signal when the 50-day/bar Simple Moving Average (SMA) pierces the 200-day/bar SMA from below.
Cardano’s bullish breakout is backed by a surge in trading volume and market cap, both hitting five-month highs. According to Santiment, ADA’s daily trading volume is $4.38 billion, and the market cap is $35.39 billion at the press time.
Despite bullish momentum, overbought Stochastic levels and nearby resistance hint at a slower, more gradual climb for Cardano rather than a sharp rally.
Cardano Price: Daily Chart Favors Buyers
With a daily close above the 8.5-month resistance-turned-support and a confirmed Golden Cross, Cardano aims to target the $1.1500–$1.1700 range from late November 2024, with $1.0500 likely serving as a short-term pause.
However, the Stochastic’s overbought level above 80 signals that ADA may consolidate before pushing higher again.
Still, the quote’s continuation of a run-up beyond the $1.1700 could aim for the $1.2000 round figure and $1.2400 upside hurdles before targeting the latest December peak of $1.3200.
Alternatively, ADA’s daily close beneath the $0.8900 would defy the latest bullish breakout and drag it back toward the $0.8400–$0.8300 support zone from December.
Following that, the 50-day and 200-day SMAs, respectively near $0.7300 and $0.7200, will be the Cardano buyer’s last defense before giving control to the bears.
Cardano Price: Four-Hour Chart Highlights Immediate Resistance
Alike the daily chart, Cardano’s four-hour chart also portrays a “Golden Cross” bullish sign, and the Stochastic is also overheated.
Additionally, a two-month-old bullish trend channel restricts the ADA moves between $1.0500 and $0.6900.
Cardano looks out for the $1.0500 hurdle, where it may witness a pullback; if not, then the daily chart resistances will be in the spotlight.
Meanwhile, ADA’s retreat from the current levels highlights 50-bar and 200-bar SMA as immediate supports, near $0.8100 and $0.7900 in that order. Also acting as a short-term downside filter is a month-long horizontal support area surrounding $0.6900-$0.6800. Following that, deeper levels discussed on the daily chart will be in the spotlight.
Conclusion
Cardano’s strong bullish breakouts and Golden Cross moving average signal keep buyers confident, but the overbought Stochastic indicator suggests a likely pause or consolidation before prices push higher. This sets the stage for ADA’s steady climb toward key resistance levels around $1.1700 and beyond.
Also read: Market Digest: Bitcoin Surges to 122K as Rate Cut Bets, Trade Truce Fuel Global Rally
