Despite Cardano’s lackluster performance, market expert Dan Gambardello believes that three technical indicators suggest a potential surge for ADA, with a short-term target of $1.
While the cryptocurrency market has seen a resurgence in bullish momentum over the past 24 hours, Cardano (ADA) has failed to excite investors. While Bitcoin has once again surpassed the $71K mark, allowing other cryptocurrencies like BNB to reach new all-time highs in 2021, with a peak of $712.
In this optimistic market environment, ADA initially saw modest gains but was unable to maintain them. Currently, its price has fallen to $0.458, one of the lowest values seen today.
Although long-term investors are still hopeful, the current trajectory of Cardano does not suggest an immediate move towards the $1 milestone. Despite reaching $0.807 in March and appearing on track to hit $1, price corrections due to Bitcoin’s bearish activity have hindered Cardano’s recovery.
Nevertheless, Dan Gambardello remains bullish about Cardano’s future. In his latest analysis, he identified historical trends and technical indicators that point towards ADA potentially reaching $1 soon.
Gambardello acknowledged the disappointment surrounding ADA’s price performance but highlighted that it is not the only underperforming asset. He noted that the altcoin market as a whole is still in the early stages of a bullish phase.
Drawing parallels with historical patterns that have driven altcoins to new highs, Gambardello suggested that ADA’s current chart closely resembles its position in 2020.
Various technical indicators support this similarity, according to Gambardello. The relative strength index (RSI) shows that in 2021, Cardano emerged from a bear market, became overbought, retraced, and then experienced another bull run. In the current cycle, the RSI indicates a similar pattern, with Cardano exiting the bear market and retracing significantly after becoming overbought.
Gambardello also referenced the Stochastic RSI and MACD indicators to strengthen his argument, noting that the current consolidation aligns with the setup from the previous cycle.
Based on these indicators, Gambardello predicts a potential resurgence for Cardano. He believes that if ADA breaks out of its current oversold position, it could experience a significant price surge, stating that “ADA could go crazy from a price perspective.”
In assessing Cardano’s potential to reach $1, Gambardello examined the time it took for ADA to surpass $1 during the previous bullish trend cycle. By analyzing the chart pattern from Cardano’s breakout in late 2020, he suggested that the asset could reach $1 by the end of this year or early 2025, factoring in the potential for retracement.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. The opinions expressed are those of the author and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic holds no responsibility for any financial losses incurred.