Cardano (ADA) exhibits potential bullish momentum as a golden cross materializes on its three-hour chart, shifting sentiment towards a possible recovery.
Technical indicators mark a positive turn, with ADA’s price climbing 2.22% to $0.7403. Its Relative Strength Index (RSI) reading of 46.12 signifies an escape from oversold territory. The golden cross pattern, occurring when the 9-day moving average crosses above the 26-day moving average, is traditionally interpreted as a signal for a sustained upward trend.
Despite these optimistic technical signs, a significant concern persists regarding trading volume. Activity remains notably subdued at $710.93 million, reflecting a 30.74% decrease. This low volume backdrop introduces the risk of a false breakout scenario, casting doubt on the strength and sustainability of the potential upward move.
Several market analysts maintain a cautiously optimistic longer-term view, suggesting ambitious targets reaching $3 per ADA, or potentially even $6.25, within the current market cycle. Traders are advised to closely monitor volume trends alongside price action movements for robust confirmation of a genuine breakout before placing significant positions based on the current technical formation.