The crypto market regained its shine again after starting the week on a dull note with Cardano (ADA) increasing by 2.8% to $0.64 on Thursday.
Cardano is quickly closing the distance to the coveted $1, bolstered by growing interest among investors. This blue-chip crypto major cements the bullish narrative with an incoming crossover.
Traders interested in entering long positions in ADA should watch out for the 21-week Exponential Moving Average (EMA) (in blue) to rise above the 50-week EMA (in red) to form the first golden cross since the uptrend began in October.
A golden cross assures investors of the uptrend gaining traction as opposed to Cardano rolling back the gains.
The Relative Strength Index (RSI) is also moving in tandem with ADA price. Although in the overbought area, with its strength at 84, the RSI will continue to positively impact ADA, as long as it is moving higher.
According to the Fibonacci retracement levels, Cardano price is in the initial stages of the recovery. A breakout above the 23.6% is bound to close the gap to $1 and set up a structure for ADA price to close in on the 61.8% Fibonacci at $2.
The Moving Average Convergence Divergence (MACD) indicator reinforces the bullish thesis with a buy signal.
The key milestone to look forward to would be the MA crossover, which should call for more liquidity as traders increase exposure to Cardano.
Due to the overbought conditions in the daily time frame, it is paramount to tread carefully to avoid slashing accrued gains or ending up in a bull trap.
If the RSI slides into the neutral area, closing long positions could be the next best thing for traders. The same traders can buy ADA as they speculate on the potential breakout above $1 and to $2.
