Cardano (ADA) may be on the verge of a significant breakout, as highlighted by renowned analyst Dan Gambardello. While ADA has seen a modest uptick of 1.5%, bringing its price to $0.3561, it still trails behind Bitcoin, which recently surged over 9.5% in the past week to reach an impressive $73,500—its highest level in seven months. For Cardano holders, the question now becomes whether ADA can capitalize on Bitcoin’s bullish momentum.
A Comparative Analysis – Cardano vs. Bitcoin
Despite Bitcoin’s recent gains, Cardano remains approximately 88% below its all-time high, while Bitcoin is merely 1.88% shy of surpassing its previous peak. Gambardello, a long-time analyst of Cardano’s cycles, reassures investors that ADA’s current consolidation phase is typical of its historical patterns. He notes that while Bitcoin has been climbing steadily, Cardano’s movements have mirrored the “sideways” price action observed in previous market cycles.
The analysis reveals a consistent trend: Cardano often lags behind Bitcoin during these phases. Gambardello recalls the last major cycle when ADA exhibited limited movement while Bitcoin saw rapid gains, especially in November. Given this historical context, he suggests that ADA could initiate a significant upward move in the coming weeks.
In November 2020, Cardano broke above its 20-week moving average, signaling the start of a promising period for the asset. Though not immediately parabolic, this breakout set the stage for sustained upward momentum, keeping ADA above the 20-week average for nearly a month. With just 42 days remaining until Cardano’s “purple line” on the cycle chart, Gambardello believes this is a pivotal moment for the asset.
Key Technical Indicators Point to a Shift
Gambardello emphasizes several technical indicators on Cardano’s weekly chart that hint at a potential shift in sentiment. Investors are encouraged to monitor the Relative Strength Index (RSI) for higher lows, along with a bullish signal from the MACD, where the signal line has recently crossed—a sign often viewed as a precursor to increased momentum.
These developments align with Cardano’s historical charting patterns, boosting confidence among investors that a reversal might be imminent. Another factor enhancing optimism is Cardano’s recent integration with BitcoinOS, which has contributed to a more favorable outlook for ADA’s long-term prospects.
Despite the current bearish sentiment surrounding ADA, primarily due to its extended period of stagnation, these bullish indicators may signal a changing trend as November approaches.
Support from Fellow Analysts
Echoing Gambardello’s analysis, fellow analyst Ali Martinez predicts a potential upward trend for Cardano, suggesting that ADA could replicate its previous November rally. If ADA follows a similar trajectory, Martinez estimates the altcoin could witness a staggering surge, reaching 23 times its current price—an echo of its performance during comparable cycles.
However, Gambardello remains cautious, advising that while these patterns are promising, market conditions can be unpredictable. “It’s worth preparing for the possibility of a similar setup now, even if nothing is guaranteed,” he states. His experience tracking these cycles since 2018 underscores the importance of vigilance among ADA holders as the bullish cycle unfolds.
As investors evaluate Cardano’s positioning relative to Bitcoin, it’s clear that ADA holders are acutely aware of the significant lag in price recovery. Over the past month, ADA has struggled to align with Bitcoin’s impressive 13% monthly increase, instead declining by 6.23%. Nevertheless, as Bitcoin approaches its all-time high, optimism remains that Cardano could soon follow suit, especially if bullish indicators continue to materialize.
In conclusion, while challenges persist, Gambardello’s outlook on Cardano’s performance remains optimistic, particularly as the asset approaches crucial technical thresholds. By keeping a close watch on the ADA chart’s RSI and MACD, investors can anticipate signals that may indicate the start of a more sustained upward trend. This renewed focus on Cardano’s positioning could signal the end of what Gambardello describes as ADA’s “boring” phase, potentially ushering in renewed interest and growth in the altcoin market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
