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Market analyst Dan Gambardello, known for his sharp insights, has issued cautionary warnings to the Cardano (ADA) community.
Gambardello highlighted often-overlooked aspects of ADA’s historical price movements in an X post. He reminded investors that during the last bull cycles, the journey to extraordinary gains was anything but smooth.
Cardano Warning and Insight from Dan Gambardello
Cardano rose dramatically in the previous cycle, gaining nearly 3,000%. This notable surge lasted about 287 days.
Per Gambardello, out of 287 days of bullish movement, 127 saw significant price drops. Cardano’s value fell to 60% from recent highs during this period. These declines tested investor patience, particularly for those expecting a steady rise.
The Analyst stressed that similar volatility will likely occur if Cardano starts another upward run. There is a strong chance of red days, setbacks, and sharp drops, even with the potential for big gains.
ADA’s price was trading at $0.5692, down 1.67% in 24 hours.
Cardano Foundation Financial Report Triggers Ecosystem
The protocol’s ecosystem is buzzing with positivity following the release of the Cardano Foundation’s first financial report insight.
This development highlights the foundation’s transparent approach to financials and its key role in supporting the Cardano’s network.
The Foundation spent $19.22 million in 2023 on operations, education, and adoption and an additional $4.55 million on operational costs. This financial report shows a rare level of industry openness, bolstering stakeholders’ trust.
The Cardano Foundation’s global impact is vast. With over 100 employees in 25 countries, the foundation has collaborated with institutions and policymakers to address societal and business challenges.
As of December 31, 2023, its assets totaled $478.24 million, with 82.5% in ADA, 10.1% in Bitcoin, and the rest in USD. This asset diversification is central to strengthening its global growth and adoption efforts.
ADA Price Now and Future Trend
The price of Cardano (ADA) has faced some corrections lately, but it is still trading above the $0.5 level. Despite this, analyst Gert van Lagen predicted ADA could rise to $10 or even $40 in the long term.
If achieved, this will mark potential increases of 1,786% and 7,400%, respectively. Notably, Van Lagen based his prediction on the Elliott Wave theory, which suggests that assets move in five waves.
In this case, ADA is in the second corrective wave, typically followed by a strong third phase. If ADA follows this pattern, the coin could experience a significant rally.
Despite the downturn, technical indicators suggest potential gains for ADA. The daily chart shows a golden cross, signaling a possible bullish reversal.
The 50-day and 200-day Exponential Moving Averages (EMA) are also nearing a key crossover. The Market Value to Realized Value (MVRV) indicator, which tracks asset value and investor behavior, is also trending upward.
The MVRV is at its highest level since March. While an MVRV above 3 indicates overvaluation, it may also signal growing momentum for ADA.
Cardano recently tested the 50% Fibonacci level at $0.5424, suggesting a possible rebound. If ADA retraces to the 38.2% level at $0.48, it could clear off the current volatility.
If ADA drops below the key pivot at $0.40, its bullish outlook might become invalidated. It could then retest support at $0.3054, a level it has held since August.