- Cardano has formed a crucial chart pattern that could signal the beginning of a rally.
- The golden cross has formed on the Cardano chart.
- Cardano’s price has recently climbed, leading the total value locked (TVL) to increase significantly.
Cardano (ADA) has formed a crucial chart pattern that could signal the beginning of a significant price rally, according to ‘Zach Humphries’ on YouTube, an entrepreneur and crypto investor. In a recently uploaded video, Humphries noted that a golden cross, a pivotal technical pattern in cryptocurrency analysis, has formed on the Cardano chart.
A golden cross happens when a shorter moving average (typically the 50-day ema) crosses over a longer moving average (typically the 200-day ema) in an uptrend. Humphries explained that the setup is traditionally considered a bullish signal in the trading community. It is an indicator that foretells the beginning of a new trend in the upward direction.
According to Humphries, Cardano’s price has recently climbed, leading the total value locked (TVL) to increase significantly. He noted that the upgrades on the decentralized blockchain have been slow and steady while acknowledging that Cardano founder, Charles Hoskinson, has been making a significant difference, with Cardano having one of the most active communities in the crypto industry.
Humphries noted that Cardano’s bullish momentum is not isolated but aligns with the overall bullish sentiment in the altcoin market. According to him, capital is returning to the altcoin market, and Cardano is experiencing some gains. He further explained that the Moving Average Convergence Divergence (MACD) supports the bullish sentiment.
The crypto investor spotted MACD signal lines and histograms supporting increased buying pressure and demand for Cardano, a conducive environment for the Golden Cross, and the established bullish sentiment.
In terms of the price, Humphries noted that the golden cross could be a precursor for a rally acceleration, an early sign that a significant rally is about to happen. He thinks the price will climb higher to retest the yearly high of $0.4625, even though the blockchain token traded for $0.3658 at the time of writing.
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