Cardano price continued its strong rally on Monday, reaching its highest level since May 15 this year. ADA jumped to $0.2663, up by over 96% from its lowest level this year. It is about to form a golden cross pattern, suggesting more upside is possible as the NIGHT token continues rising.

Cardano price is nearing a golden cross pattern

ADA price has been in an upward trend after bottoming at $0.1388 in June this year. It has formed a series of higher highs and higher lows, forming an ascending channel.

A closer look shows that it is now approaching the upper side of the channel, which may lead to further upside or a reversal.

Odds are that it will have a continuation since a golden cross is slowly emerging. This pattern happens whenever the 50-day Exponential Moving Average (EMA) crosses the 200-day moving average. While this pattern has not formed yet, the spread between the two lines is narrowing, which may lead to further upside.

Cardano price has also remained above the Supertrend indicator. In most cases, an asset remains in an upward trend as long as the indicator is green. It has also remained above the Ichimoku cloud indicator.

Therefore, a surge above the upper side of the ascending channel will point to more gains, potentially to the psychological level of $0.300. A move past that level will bring the crucial resistance level of $0.50 into view.

On the other hand, a drop below the key support level of $0.2400 will invalidate the bullish outlook.

ADA price chart | Source: TradingView

Cardano is benefiting from the ongoing NIGHT token surge

One of the main reasons why Cardano token is soaring is that Midnight (NIGHT) is in a strong bull run. NIGHT bottomed at $0.01500 in July and then staged a comeback, eventually hitting the resistance level of $0.05300 on Saturday. Its highest point this month was its highest level since March 28.

Midnight token has jumped because of the ongoing optimism that it will be the next big thing in the privacy industry. In a recent statement, Charles Hoskinson said that it will become bigger than Zcash, citing its wider use case, including in industries like artificial intelligence and decentralized finance. He was responding to a statement made by Weiss Ratings, which noted that Midnight will be a top coin to watch in the next 12 months.

Midnight is hoping to onboard more developers to its ecosystem. It recently made it possible for these creators to deploy smart contracts on the network.

Cardano’s DEX and stablecoin growth is continuing

Meanwhile, there are signs that the network’s growth in the decentralized exchange (DEX) industry is doing well. DeFi Llama data shows that DEX protocols in its ecosystem handled transactions worth over $348 million last quarter. This amount was the highest level since the fourth quarter of last year when it handled transactions worth over $408 million.

Additionally, the amount of stablecoins in circulation continued rising and hit a record high. These stablecoins now stands at over $67 million, up sharply from $19 million in March this year. The biggest stablecoins in the chain are USD Coin (USDC), Moneta, Anzens USDA, and Djed.

While these amounts were strong, other metrics were not all that good. For example, its chain fees dropped to $129k last quarter, down from $164,000 in the previous quarter. Also, the total value locked (TVL) in the network continues falling this month.

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