Cardano (ADA) holders are enduring a difficult period, with the cryptocurrency experiencing a sharp 65% decline since March. Despite this downturn, new developments and technical indicators, explained by analyst Dan Gambardello, suggest a bullish turnaround may be imminent.
Gambardello, a well-known pro-Cardano analyst, recently shared these insights in a detailed video. He emphasized Binance’s recent upgrade and support for Cardano’s hard fork as significant positive developments. This hard fork aims to enhance on-chain governance, marking a crucial step for Cardano’s ecosystem.
Historical Patterns And Current Trends
Currently, ADA is down approximately 90% from its all-time high. Gambardello pointed out that this steep decline mirrors the last cycle when ADA dropped around 93% about 100 days after the Bitcoin halving. Furthermore, since October 2022, Bitcoin dominance has been rising, historically signaling tough times for altcoins like ADA. Investors are now awaiting a reversal in Bitcoin dominance, which could trigger a new altcoin season.
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Gambardello highlighted potential bullish divergence on the weekly chart, where ADA shows a lower price low but a higher low on the Relative Strength Index (RSI). He also noted ADA’s interaction with its 20-week and 50-week moving averages, which recently crossed, suggesting a consolidation phase before a bullish move.
RSI And Stock RSI Insights
The stock RSI has yet to indicate that ADA is oversold, but a higher low on the stock RSI could set the stage for a significant upward move. Despite volatile price patterns since March, the analyst views these setups as a bullish signal. Historically, ADA hits oversold conditions on the RSI before moving towards crucial moving averages. If the trend line holds, ADA could target the 20 and 50 moving averages, flipping momentum from lower lows to higher highs.
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This critical point mirrors the last cycle, suggesting current consolidation is a part of regular market behavior. At press time, Cardano is recovering alongside the broader market from yesterday’s massive fall. ADA has registered a 10% increase in the last 24 hours, trading at $0.3308. While ADA holders are facing a challenging period, positive developments and technical indicators suggest a bullish turnaround might be on the horizon.
Gambardello’s analysis provides a hopeful outlook for investors, emphasizing historical patterns and current trends that point to potential recovery and growth.
