cryptoglobe.com
The native token of the Cardano blockchain, ADA, has lost around 12% of its value over the past week amid a wider cryptocurrency market decline that saw Bitcoin ($BTC) plunged to around $54,000 after losing 8% of its value over the same period.
Nevertheless a popular cryptocurrency analyst, Dan Gambardello, has recently suggested that the price of ADA could rally over 1,000% against the flagship cryptocurrency Bitcoin based on an “insane bullish divergence.” Per the analyst, the last time such a divergence was seen ADA rallied 1,000% against BTC, four years ago.
🚨 Insane bullish divergence on the ADA/BTC daily chart.
— Dan Gambardello (@cryptorecruitr) September 5, 2024
Last time this happened 4 years ago, Cardano rallied over 1,000% against Bitcoin. pic.twitter.com/cR0uqkIcTe
Gambardello’s bullish case is based on a bullish divergence seen after the price of ADA formed lower lows while the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) formed higher lows.
This pattern often signifies weakening downward pressure and the possibility of an impending reversal. This comes after Cardano officially rolled out its Chang” upgrade, a significant development that moves the platform closer to decentralized governance.
This upgrade empowers ADA token holders by allowing them to participate directly in the platform’s governance, electing representatives and voting on key development decisions
The governance changes are structured through CIP-1694, a Cardano Improvement Proposal that introduces three new community-led governance bodies: the Constitutional Committee, Delegate Representatives (dReps), and Stake Pool Operators (SPOs).
These groups will now take over responsibilities previously held by Cardano’s founding entities—Cardano Foundation, Input Output Global (IOHK), and Emurgo—including the authority to initiate chain upgrades and hard forks.
Featured Image via Unsplash