Cardano (ADA) Price Prediction: Will the Golden Cross Pattern Spark a Rally to New All-Time Highs?

Cardano price has shown impressive recovery signs in recent days, managing to climb above the $0.70 mark for the first time since March. This move has traders focused on the next price targets and technical setups that could come into play if the rally continues.

The ADA token is currently trading around $0.71, registering a daily gain of 2.04%. Over the past seven days, Cardano has enjoyed a healthy return of 11-12%, showcasing renewed investor interest in the asset.

Healthy Volume Increase

Trading volume has seen a healthy increase of 33% in the past 24 hours, reaching approximately $723 million. This surge in volume signifies that buyers are becoming more active as Cardano attempts to overcome key resistance barriers.

Technical analysis reveals that ADA has formed a Golden Cross pattern on the 4-hour chart. This bullish indicator occurs when a short-term moving average crosses above a long-term moving average, often signaling the potential for continued upward momentum.

The cryptocurrency is currently testing the 200-day Exponential Moving Average (EMA), a critical threshold that could determine its next move. A successful breakout above this level could accelerate the rally toward higher targets.

At the same time, technical analysis also reveals that the Relative Strength Index (RSI) has slipped back into neutral territory after entering overbought conditions. This suggests that the bullish momentum may be cooling down slightly.

However, the Parabolic Stop And Reverse (SAR) indicator shows dots positioned below the price, indicating solid support for higher prices. When these dots appear below price action, it typically signals a bullish trend with strong underlying support.

After forming a bullish falling wedge pattern, which signals a shift in momentum from sellers to buyers, Cardano's price action has reversed. It is now moving toward the midway and upper edge of a falling channel formed in early 2025.

Key Resistance Levels In Focus

As traders set their sights on the next price targets, they are keenly watching key resistance levels that could determine the direction of the rally.

Analysts identify several resistance levels between $0.70 and $0.74. A breakout above these barriers could pave the way for a move toward $0.88, with further potential to reach the psychologically important $1 mark.

Support levels are observed at the lower border of the channel between $0.55 and $0.57. If resistance holds firm, Cardano could revisit these support levels before attempting another breakout.

This analysis also takes into account the lower timeframe charts, which are displaying signs of a bullish divergence in the MACD indicator on the 15-minute chart. This divergence usually occurs when the MACD line pulls back from the signal line, forming lower highs, while price action continues to rise, forming higher highs.

In essence, the MACD indicator is showing signs of weakness or tiredness, while price trends indicate strength and potential for continuation. This divergence can be a bearish signal, suggesting that the current bullish trend may be nearing its end.

At the same time, the Money Flow Index (MFI), which measures buying and selling pressure, has risen to 55.33, suggesting neutral to slightly bullish conditions. This indicator is not yet in overbought territory, meaning there is still potential for rising prices if the bullish undertone persists.

On the technical front, Cardano has also breached the 0.618 Fibonacci retracement level, which many traders consider the "golden pocket ratio." This breakthrough further supports the case for continued upward movement.

Overall, the technical analysis presents a mixed picture. While some indicators suggest that the bullish momentum may be cooling down, other indicators point to continued support for higher prices.

The Money Flow Index (MFI), which measures buying and selling pressure, has risen to 55.33, suggesting neutral to slightly bullish conditions. This indicator is not yet in overbought territory, meaning there is still potential for rising prices if the bullish undertone persists.

On the technical front, Cardano has also breached the 0.618 Fibonacci retracement level, which many traders consider the "golden pocket ratio." This breakthrough further supports the case for continued upward movement.

This analysis also takes into account the lower timeframe charts, which are displaying signs of a bullish divergence in the MACD indicator on the 15-minute chart. This divergence usually occurs when the MACD line pulls back from the signal line, forming lower highs, while price action continues to rise, forming higher highs.

In essence, the MACD indicator is showing signs of weakness or tiredness, while price trends indicate strength and potential for continuation. This divergence can be a bearish signal, suggesting that the current bullish trend may be nearing its end.

At the same time, the Parabolic Stop And Reverse (SAR) indicator shows dots positioned below the price, indicating solid support for higher prices. When these dots appear below price action, it typically signals a