Cardano (ADA) is exhibiting promising technical indicators, suggesting a potential recovery and strengthening bullish momentum according to market analysts.
The key technical development is the formation of a golden cross pattern on ADA’s 3-hour chart. This classic bullish signal occurs when a shorter-term moving average crosses above a longer-term one, often indicating a possible shift towards a positive trend.
Complementing this signal is ADA’s recent price action. The digital asset recorded a 2.22% gain within the past day, stabilizing its price above the $0.74 support level. Furthermore, the Relative Strength Index (RSI) has climbed to 46.12.
This RSI reading represents a notable improvement, moving away from oversold territory and bolstering the case for continued upward price movement potential.
However, ADA’s trading volume presents a contrasting signal. Despite the positive technical signs, daily volume contracted significantly by 30.74%, settling at approximately $710.93 million. This decline indicates subdued market participation alongside the developing bullish setup.
A key psychological barrier remains for ADA bulls. The cryptocurrency has not yet managed to reclaim the significant $1 price level. Market observers are closely monitoring whether this nascent momentum can be sustained to challenge this crucial threshold.