Cardano (ADA) could be nearing a key bullish reversal, according to trader and analyst Lark Davis. He highlighted that the altcoin is about to print a daily MACD golden cross below zero, a signal that historically preceded a significant rally.
In a post shared on October 20, Davis noted that the last time Cardano flashed this pattern, it climbed sharply within weeks. "ADA is about to print a daily MACD golden cross below zero. The last time this happened, Cardano pumped over 60%," he wrote. However, he warned that ADA still faces strong resistance between $0.74 and $0.77, coupled with a downward trendline that has capped every rally since August.
According to CoinMarketCap data, ADA is trading at $0.6624, down 4.7% over the past week. It has a 24-hour trading volume near $1.1 billion and a market capitalization of $23.7 billion. The recent pullback reflects hesitation across altcoins as Bitcoin consolidates near $107,000. ADA’s price briefly tested $0.69 before retracing, suggesting traders remain cautious ahead of a potential breakout attempt.
Technical Indicators and Price Potential
Technical indicators align with Davis’s analysis. The MACD histogram is tightening toward a bullish crossover, while RSI levels show room for upside momentum. If ADA breaks above the $0.77 resistance zone, analysts anticipate a run toward $0.90–$1.00, levels not seen since early summer.
Cardano Ecosystem Development
Cardano remains one of the top Layer-1 blockchain projects by market cap. It continues to expand its ecosystem with decentralized finance (DeFi) integrations and governance upgrades through the Voltaire phase.
Market Outlook
For now, traders are watching whether the upcoming MACD golden cross can trigger renewed momentum, or if ADA’s long-term downtrend will continue to weigh on the market.