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Cardano, the 8th largest cryptocurrency by market cap, will print a key pattern on its daily chart. This is because the moving averages on the daily chart are set to make a crossover in one or two days.
The nature of the crossover could have a significant impact on the price trend in the short and medium term.
A golden cross occurs when the daily moving average (MA 50) rises above the daily moving average (MA 200), and could indicate the exhaustion of the market’s bearish momentum.
The death cross appears on a chart when the short-term moving average, the daily MA 50, crosses below the long-term moving average, usually the MA 200.
The Death Cross, despite its foreboding nickname, is not a market milestone to fear. Based on market history, most death crosses tend to herald a short-term rally with above-average returns.
At the time of writing, ADA was up 4.77% in the last 24 hours to $0.375. Cardano rose as much as 8% in early trading on Sunday as the bulls consolidated with the previous day’s rise, which saw ADA jump to $0.378.
The bulls took ADA price to intraday highs of $0.379 today before hitting a roadblock. On the upside, Cardano is facing a hurdle at $0.409 which, if cleared, will trigger a fresh rally.
Ali, a cryptanalyst, notes that Cardano’s current consolidation trend eerily mirrors the 2018-2020 cycle. If this is the case, ADA could surpass the $0.45 resistance level around the first week of December. Ali believes the rally could send ADA to $0.75 by the end of December if this happens.
In a major milestone, the Cardano network surpassed the 9 million mark in native assets. According to data from pool.pm, the number of native tokens on the Cardano blockchain is currently 9,056,490, with 81,047 different minting policies.
