With the cryptocurrency market making a recovery towards the end of 2023 and optimism returning to investors, Cardano (ADA) has emerged as a standout performer with strong bullish signs. Analyst Dan Gambardello, the founder of Crypto Capital Venture, believes that the “Cardano Bulls” may have ignited an impressive rally.
Gambardello’s analysis of ADA’s recent price movements highlights a series of technical and fundamental events that suggest a promising future. One of the key indicators of a potential uptrend is ADA’s weekly close above the 50-week exponential moving average (EMA), which hasn’t been seen since the beginning of spring in 2023.
This breakthrough is not just a mere chart movement, but according to Gambardello, it signifies a shift in market sentiment on a larger scale. Cardano has a strong foundation, thanks to features like staking, the multi-asset ledger introduced by the Mary hard fork, and upgrades such as Alonzo smart contracts. These improvements have created a more robust and capable ecosystem compared to previous cycles.
Examining the 6-hour chart, Gambardello points out a bullish divergence in the Relative Strength Index (RSI), where ADA shows a higher peak in RSI despite a lower price. This indicates momentum that dates back to the last time the cryptocurrency surpassed the 50-week EMA resistance.
Although the daily chart suggests that ADA is overbought, which typically precedes a consolidation phase, Gambardello doesn’t dismiss the possibility of reaching a peak of 45 cents. However, he believes that a significant pullback could occur before reaching that level. He identifies the 20-day and 200-day EMAs and Fibonacci retracement levels as crucial support areas.
In conclusion, Gambardello emphasizes the growth of the DeFi space on Cardano and the increase in developer activity as factors that contribute to the bullish sentiment in the market. He predicts a gradual climb for ADA, acknowledging that while the bulls may be in control, achieving new highs will require patience and careful attention to market volatilities.
Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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