- A renowned crypto analyst has hinted that Cardano (ADA) could replicate a 2020-2021 move to peak between $5 and $10.
- According to him, the market is currently down by 88%, which is similar to the 92% consolidation recorded in the previous cycle before embarking on a bull run.
Cardano (ADA) has been trading sideways in the past couple of days as bears threaten to seize control. However, a renowned analyst identified as Dan Gambardello has disclosed that the asset is just a “move away” from pulling a surprising breakout.
Supporting his thesis, Gambardello cited a historical price behavior where the asset pegged at the $0.09 support level in October 2020. According to him, he spotted a rare bullish pattern and posted his observation around that time. Within a few months, the asset embarked on a remarkable upsurge and later hit its all-time high price of $3.10 in September 2021. This represents a whopping surge of 3,340%.
Four years after this dramatic surge, the analyst has disclosed in a 14-minute video that ADA is on the verge of breaking out of a six-month consolidation pattern in a move that could replicate the 2020-2021 cycle. Throwing more light on this, Gambardello explained that altcoin season historically occurs several months after each Bitcoin halving. This implies that the post-halving consolidation is almost at the end.
CARDANO’S Next Move Will SHOCK The Masses! (You Should Be Ready)
Intro 00:00
Is Cardano really behind? 1:05
ADA more bullish this cycle 2:55
$1 could come fast! 4:40
A couple ADA scenarios 7:40
.42 this week? 9:30
Cardano dip support 11:30 pic.twitter.com/WMe03mJo8J— Dan Gambardello (@cryptorecruitr) October 6, 2024
Delving Deep into the Market Behavior of Cardano (ADA)
Drawing a technical comparison between the previous cycle and the current one, Gambardello highlighted that ADA’s current decline of 88% is similar to the 92% pullback recorded in the same period in 2020. Specifically, he explained that the current consolidation is not “historically unusual”.
Regardless of his bullish prediction, Gambardello also cautioned investors to exercise patience as the period for a new all-time-high is still far away. Even that, he predicted that ADA could breach the $1 resistance level by December 2024 and continue to peak within the range of $5-$10.
Alluding to this thesis, another analyst identified as Trend Rider has shared that a successful stabilization of Bitcoin (BTC) above the $60k area would position ADA to the $0.6 price point without any significant consolidation. Reviewing his analysis, CNF discovered that an accompanying chart, which is marked “A” and “B,” suggested that the price could fall to $0.24 before this upsurge. This implies that Bitcoin could likely plunge below $60k in the short term.
Looking at IntoTheBlock data, we found that investors have mixed sentiments around the asset as large transactions have marginally increased in the past few days. Specifically, whales accumulated 17.67 billion ADA in just 24 hours. Meanwhile, the “In The Money” metric showed a bearish outlook as profitable addresses holding the asset have dropped to 17.59%.
According to analysts, ADA could decline to the $0.22 level if the 77.34% of addresses that are currently at a loss decide to sell. Fascinatingly, this price point is also a very crucial support area where 539,210 addresses purchased 5.42 billion ADA.
At press time, ADA was trading at $0.3469 after declining by 2.6% in the last 24 hours and 9% in the last seven days.
