In recent weeks, the price of Cardano 
$0.246046 (ADA), a favorite altcoin among traders, is struggling to climb above the key resistance level of $0.85. Despite indications of a potential bullish move, highlighted by an approaching “Golden Cross” signal in technical indicators, ADA is finding it challenging to rise. This is primarily due to a drop in daily active addresses and low volatility, even though the coin has shown a robust recovery from local lows and an increase in trading volume. While successfully holding above the 200-day moving average as support, ADA has not yet managed to make its gains permanent following a short-term downtrend break.
Technical Landscape of ADA Coin Charts
According to data from CoinMarketCap, despite a recorded 30-40% increase in trading volume for Cardano, daily active addresses have noticeably decreased. This suggests that large investors at the whale level are accumulating, contributing to reduced price volatility. The decline in individual investor participation has resulted in ADA’s price being trapped within a specific range.
Moreover, the price is technically still moving within a downward parallel channel formation. Although trading above the 200-day moving average, it has not yet broken through the resistance level of this channel, which indicates a weakening of the strength among the hopeful bulls. Even short position liquidations exceeding $800 million have failed to prevent a decline in active addresses during price rises.
Potential Upsurge Scenario with the Golden Cross
In ADA coin’s price chart, the Relative Strength Index (RSI) has reached an upper threshold. Entering the overbought territory could trigger an exit movement from the current price pattern (parallel channel). Such activity could lead to the establishment of a crucial technical signal known as the “Golden Cross” between the 50-day and the 200-day moving averages.
Confirmation of the Golden Cross signal is recognized as the beginning of a strong upward trend that could push Cardano’s price above the $1 mark. Therefore, the weekly candlestick closure holds significant importance for ADA coin.
Additionally, failure to maintain a stable rise above the $0.85 level may result in further extension of the current consolidation period.
