Cardano has printed its first golden cross of the year, with the signal appearing on the 2-hour chart on January 4, suggesting bullish momentum that has been evident in the days since before a pullback. The golden cross occurs when a short-term moving average, usually the 50-period MA, crosses above the long-term moving average, and a higher-timeframe cross is forming as the 200- and 50-period MAs converge on the 4-hour chart, indicating potential momentum persistence. Some analysts warn that golden crosses are lagging indicators that confirm a trend rather than pre-announcing a shift, but the early cross on lower timeframes could signal initial strength if momentum continues.
ADA trades around $0.41, down about 3% in the last 24 hours, but up 16.8% over the past week and 23.5% since the start of the year. The daily RSI sits at 56.09, signaling solid momentum while staying below overbought levels, and trading volume has declined 4.4% to $859 million, suggesting lighter market activity. If sentiment remains positive and broader market conditions stay favorable, Cardano could reach higher resistance levels, with forecasts of new all-time highs for ADA in 2026, including a projection of $3.5 by year-end from Grok.
Factors that could fuel the rally include clearer regulations, progress on the Midnight mainnet and the Ouroboros Leios upgrade, and a supportive macroeconomic environment, which could help ADA test higher levels. Overall sentiment remains positive as analysts anticipate bullish momentum building if broader market conditions stay favorable.
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