Cardano (ADA) is back into bullish mode, with a golden cross formation now extended. With this outlook, the ADA price is currently eyeing the $1 milestone as prices and market momentum continue to build.
Cardano flashes bullish signal
The extended golden cross formed on the three-hour chart implies ADA could sustain its bullish rally soon.
A golden cross occurs when a short-term moving average goes above a longer-term moving average. In the case of ADA, the nine-day moving average has crossed over the 21-day, which suggests a potential bullish trend reversal.
As of press time, ADA is priced at $0.87 per coin, demonstrating a 12.6% increase over the past 24 hours. The ADA price rallied as high as $0.88 earlier today before dropping to the current levels.
Meanwhile, technical support is sitting right around $0.8098, aligning with the 23-day moving average. If the ADA price continues to hold above this level, it could easily reach the $1 mark.
However, the Relative Strength Index (RSI) for ADA is at 70.3, indicating that the asset is becoming overbought. This level suggests a potential correction might be around the corner.
Still, momentum and sentiment are bullish, with ADA seeing a fresh wave of interest from investors. In the past 24 hours, ADA trading volume has rallied more than 102% to $2.5 billion.
ADA set for new highs
A golden cross formation is usually seen as a good sign for the market. It is usually seen as important when investors are showing optimism, as seen in the current market.
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The ADA price witnessed a 300% increase in November 2024, following a golden cross formation. Cardano rose from $0.325 in early November 2024 to reach $1.32 on Dec. 3 of the same year.
Considering this rally, the market will be watching to see if history will repeat in the current market cycle, especially with the Cardano ETF on the horizon. Note that a 300% surge from the current price of $0.87 would produce a target of $3.48.