Leading analyst Dan Gambardello asserts that the bull market for Cardano remains intact, even as ADA reaches a new low for the year.
On Monday, Cardano faced significant losses, falling victim to the prevailing bearish sentiment that has gripped the cryptocurrency market. Specifically, ADA plummeted to $0.27 following a 20% drop, marking a lower low compared to last month’s bottom of $0.321. Since reaching its yearly peak of $0.81 in March, ADA has seen a decline of over 65%.
This downturn has led many to lose faith in ADA as it continues to hit new lows during significant market fluctuations. Nevertheless, Gambardello contends that there is no reason for panic regarding ADA, maintaining that Cardano is still aligned with its expected performance based on historical trends.
**Cardano’s Historic Resilience**
Gambardello referenced data indicating parallels between the current cycle and previous ones. He noted that ADA has only experienced an 89% decline from its all-time high, which is reminiscent of the 93% drop seen approximately 100 days after the last Bitcoin halving.
Moreover, he emphasized that, despite the current bleak chart patterns, Cardano’s fundamentals are robust. His confidence in ADA has strengthened, particularly following Binance’s recent upgrade to support the upcoming Cardano hard fork. This technical update will enable on-chain governance, allowing ADA community members to participate actively.
Additionally, Gambardello pointed out a potential bullish divergence on the weekly RSI, suggesting that ADA might be gearing up for a reversal. While he recognizes the discomfort caused by the recent dip, he insists that similar trends have emerged in past cycles, often followed by significant recoveries.
**ADA’s Performance in Context**
The analyst clarified that ADA is not lagging behind during an altcoin season characterized by low Bitcoin dominance. Instead, its subdued movements align with trends observed in the previous cycle before it reversed and surged to an all-time high of $3.10.
**Gambardello’s Short-Term Outlook for Cardano**
In the near term, Gambardello is keenly observing ADA’s approach to its moving averages (20, 50, 200) and anticipates a shift in momentum from lower lows to higher highs. Historically, the periods following Bitcoin halving have been favorable for altcoins, and he believes ADA is poised to take advantage of this trend as Bitcoin’s dominance begins to wane.
In summary, Gambardello asserts that Cardano’s bull cycle is “not canceled” and that its current movements are “normal.” However, he advises ADA supporters to remain vigilant and ready for any developments.
**Disclaimer:** This article is for informational purposes only and should not be construed as financial advice. The opinions expressed are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment choices. The Crypto Basic is not liable for any financial losses.