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Cardano forms the first-ever weekly Golden Cross signaling a strong long-term bullish trends.
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Whales accumulate over 120M ADA in exchanges as more than $8M leaves the market, indicating a rising confidence.
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ADA is looking to break out past $0.70. The next resistance will be near $0.95-$1.00, amid bullish indicators.
Cardano ($ADA), a cryptocurrency, is showing new signs of strength. It has formed its first-ever Golden Cross weekly, a significant technical milestone which has given traders and analysts hope. This pattern occurs when a 50-week moving-average crosses above a 200-week-moving-average, which often signals a major long term bullish trend.
ADA is currently trading at $0.63. This momentum has given traders and analysts hope that a breakout will push Cardano into the top five cryptocurrencies in terms of market cap.
The Weekly Golden Cross: A Historic First
The formation of the Golden Cross in the weekly chart is a historic moment for Cardano. A Golden Cross is formed when a shorter-term (in this instance, the 50-week moving average) crosses over a longer-term (the 200 week). This is one of the strongest confirmations for technical analysts that a long-term shift has occurred from a bear to a bull market.
The price of ADA has been consolidating for months between $0.50 and $ 0.66. Positive market sentiment has been boosted by a recent 6% bullish Weekly Candle.
If Cardano closes above this range and volume increases, the next upside target is $0.95 to $1.00.
Breaking Key Resistance: ADA’s Next Challenge
The technical outlook does not come without short-term risks, despite the strong long-term signals. The key resistance for ADA is now between $0.66 to $0.70. To confirm the breakout, a successful weekly close above this level, especially with rising volume, is required. Analysts have set the next targets for the $0.95-$1.00 range if that happens.
According to Crypto Rose Channel this breakout could re-ignite investor interest and position Cardano so that it can reclaim its place among the top five cryptocurrency by market cap.
RelatedCardano Experiences Renewed Demand from Whale Investors – Can ADA Price Regain Bullish Movement?
Whales and Exchange Outflows Strengthen Bullish Case
Zhao Lusi, a whale expert, highlights the significant activity of recent weeks. Large holders have accumulated approximately $71,000,000 worth of 120 million ADA.
Moreover, more than $8 million of ADA have been removed from exchanges, reducing the potential for sell pressure. These whale movements indicate that institutional investors are getting ready for a possible rally.
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Technical indicators are also in line with this sentiment. The MACD is showing a bullish cross-over, and the RSI is at a healthy 57. This reading indicates moderate bullish momentum with room for more upside before entering overbought terrain.
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