Cardano’s Golden Cross Signals Bullish Reversal Amid Market Rally

Key Insights:

Cardano formed a golden cross on its hourly chart, signaling a shift in market sentiment with reduced selling pressure.

The cryptocurrency surged 5.73% in the last 24 hours, riding on the broader market rally fueled by Bitcoin optimism.

Cardano’s core development team secured $71 million for network upgrades, including Hydra and Project Acropolis, boosting future demand.

In August, Cardano (ADA), the 10th largest cryptocurrency by market capitalization, witnessed the formation of a golden cross for the first time. This technical pattern occurs when the short-term moving average (typically the 50-period simple moving average, or SMA) crosses above the long-term moving average (commonly the 200-period SMA). On Cardano’s hourly chart, the 50-hour SMA crossed above the 200-hour SMA, confirming the golden cross. This indicates a shift in momentum as short-term selling pressure begins to ease.

August started on a rocky note for Cardano as its price dropped to a low of $0.684 on August 2, following a six-day decline from July’s closing levels. Amid the downturn, the price action triggered a bearish death cross on the four-hour chart. The death cross, which happens when the 50-period SMA falls below the 200-period SMA, suggested that the market sentiment was predominantly negative during that period. Despite this, the market began to recover as bullish momentum picked up.

Positive Price Action and Broader Market Optimism

As of the latest update, Cardano’s price had surged by 5.73% within the last 24 hours, reaching $0.80. This upward movement comes as the broader cryptocurrency market experiences a rally. Optimism surrounding Bitcoin’s integration into retirement portfolios, such as 401(k) plans, has helped boost the market sentiment, contributing to Cardano's price rise.

Source: TradingView

By the most recent update, the price of the Cardano rose by 5.73% in the past 24 hours and reached 0.80. Such rally is due to a wider market rally of cryptocurrencies. The market sentiment on the price of Cardano contributed to the increase, focusing on optimism around the introduction of Bitcoin in retirement accounts, like the 401 (k) plans.

Support from the Development Team

In the background of this price movement, the core development company of Cardano, Input Output (IO), has recently been given the green light to access a bloc of $71 million in its treasury to implement a set of upgrades on the network within the next 12 months

Such upgrades introduce major projects like Hydra and Project Acropolis, which are likely to increase network scalability and developer activity. The increment in demand for the ADA token offered by Cardano is expected at the launch of these projects online, which further assists with its growth.