Cardano, the tenth largest cryptocurrency, formed a golden cross in August, potentially signaling growth. Let's examine the current trends and future prospects.
What is a Golden Cross?
A golden cross is a bullish pattern that occurs when the short-term moving average (typically 50-period SMA) crosses above a long-term moving average (200-period SMA). On Cardano's hourly chart, the 50-hour SMA crossed above the 200-hour SMA, indicating a waning short-term selling pressure.
Current Trends and Cardano's Price Level
August started on a shaky note for Cardano, hitting a low of $0.684 on August 2 after a price drop. During this time, a bearish death cross was registered on the four-hour chart, occurring when the 50-period SMA falls below the 200-period SMA. However, ADA has since risen 5.73% to $0.80 as the broader cryptocurrency market began to rally.
Cardano's Future and Key Projects
Attention is currently focused on whether Cardano can once again reach the $1 level last seen in early March this year. The core development team, Input Output, recently secured approval for a $71 million treasury allocation for network upgrades, which is expected to boost developer activity and create new use cases.
The situation in the Cardano market remains dynamic. The golden cross could signal potential growth, but it's essential to monitor key resistance levels and network development plans.
