Cardano (ADA) has been a puzzling outlier in the recent crypto market surge. While Bitcoin triumphantly reclaimed the $71,000 mark and altcoins like BNB shattered records, ADA remains stubbornly flat, currently hovering around $0.458. This has left long-term investors wondering when, or even if, ADA will fulfill its promise of reaching $1.
Despite the current stagnation, crypto analyst Dan Gambardello remains bullish on Cardano’s prospects. He argues that technical indicators are hinting at a potential “crazy” upsurge for ADA, with a target price of $1 in the near future.
Cardano Lags Behind the Market Rally
The past 24 hours have seen a renewed bullish sentiment sweep through the crypto market. Bitcoin surged towards $71,000, reigniting investor confidence. However, ADA initially showed minimal gains and quickly retreated. This underwhelming performance stands in stark contrast to other altcoins, like BNB, which shattered its 2021 all-time high.
While long-term holders remain hopeful, ADA’s current trajectory doesn’t suggest an immediate climb to $1. Back in March, with prices at $0.807, ADA seemed well on its way to reaching that milestone. However, a downturn in Bitcoin’s fortunes triggered a broader market correction, dragging ADA down as well. Notably, Bitcoin has since fully recovered, while ADA continues to struggle.
Gambardello’s Case for a $1 ADA
Undeterred, Dan Gambardello sees reasons for optimism. He acknowledges investor frustration but points out that ADA isn’t the only underperformer. The altcoin market, as a whole, is still in the early stages of its bullish phase.
Gambardello believes Bitcoin’s current trajectory mirrors historical patterns that have previously sent altcoins soaring. He highlights a striking similarity between ADA’s price chart today and its position in 2020.
Technical Indicators Signal a Potential Breakout
Gambardello goes beyond visual similarities and delves into technical indicators to support his claim. The Relative Strength Index (RSI) – a measure of buying and selling pressure – suggests a potential repeat of the 2020 breakout. In 2021, Cardano emerged from a bear market, became overbought (RSI above 70), and then retraced before another bull run. The current RSI pattern follows a similar path, indicating that ADA might be poised for a significant upswing.
Similarly, the Stochastic RSI and MACD indicators also show formations reminiscent of the 2020 cycle. If ADA breaks out of its current oversold position (RSI below 30), Gambardello predicts an “explosive price surge.”
Also Read: Cardano Slumps: Lower Network Revenue Fuels ADA Downtrend – Can Bulls Defend $0.40?
Timeline for Reaching $1
To estimate a timeframe for ADA hitting $1, Gambardello analyzes the previous bullish cycle. In early 2019, ADA traded between $0.03 and $0.08. By late 2020, it broke out and climbed steadily, reaching $1 by early 2021.
Projecting this historical pattern onto the current chart, Gambardello suggests that ADA could reach $1 by the end of 2024 or early 2025, factoring in potential retracements.
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.
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