Despite Cardano’s poor performance, market expert Dan Gambardero cited three technical indicators confirming that ADA could see a “crazy” rally with the goal of reaching $1 in the short term.
There has been bullish momentum in the crypto markets over the past 24 hours, but Cardano (ADA) still continues to disappoint investors. Today, Bitcoin revisited the $71,000 threshold, allowing competitors like BNB to break its 2021 all-time high, setting a new high of $712.
In this optimistic market, ADA initially made slight gains but failed to maintain them. Its price has now fallen back to $0.458, one of the lowest values today.
While long-term investors remain hopeful, Cardano’s current trajectory does not suggest it is on the verge of reaching the $1 milestone. In March, when ADA was trading at $0.807, it briefly headed towards $1, but the onset of the Bitcoin bear market triggered a price correction, and although Bitcoin has fully rebounded, Cardano has failed to recover.
Despite this, Dan Gambardero remains optimistic about Cardano’s prospects. In his latest analysis, he points out that historical trends and technical indicators confirm that ADA could soon reach the $1 mark.
Gambardero began by acknowledging the frustration surrounding ADA’s price performance. However, he noted that ADA is not the only asset that has performed poorly, pointing out that the altcoin market as a whole is still in its initial bullish phase.
Gambardero suggested that Bitcoin’s current setup for the remainder of this bull run is similar to historical patterns that have driven alternate coins to new highs, as Bitcoin leads the charge. He observed that ADA’s current chart is very similar to where it was in 2020.
Technical indicators confirm the upcoming crazy ADA rally
According to Gambardero, various technical indicators support this similarity. For example, the Relative Strength Index (RSI) shows that in 2021, Cardano emerged from a bear market, became overbought, then pulled back and then started a bull market again.
In the current cycle, the RSI suggests that Cardano exited the bear market in Q4 2023, was overbought in Q1 2024, and has already seen a notable correction.
The Stochastic RSI indicator also shows a similar pattern to the previous period. Gambardero also cited the MACD indicator to strengthen his argument, noting that the current consolidation pattern is similar to the setup of the previous cycle.
Given these indicators, Gambardero foresees Cardano’s return soon. He believes that if ADA breaks out of its current oversold position, it will see an explosive price rally. In his words, “ADA could go crazy from a price perspective.”
Timeline for $1 ADA
When assessing Cardano’s potential to reach $1, Gambardero looked at how long it took ADA to surpass $1 during its last cycle of bullish trends.
Notably, Cardano’s trading price fluctuated between $0.03 and $0.08 between early 2019 and late 2020. Gambardero tracked the chart pattern that emerged after Cardano broke out in late 2020, eventually reaching $1 in early 2021.
He superimposed this past pattern onto ADA’s current chart and deduced that, given the likelihood of a retracement, the asset could climb back to $1 by the end of this year or early 2025.
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