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Prominent Cardano pundit Dan Gambardello has suggested ADA could regain the $1 mark in the coming weeks amid the ongoing depressing performance.
Cardano has been a major victim of the market downturn in the past few weeks. ADA came very close to relinquishing the $0.4 threshold earlier this month during the market bloodbath. While it has rebounded notably to trade at $0.46, its price has yet to re-enter the psychological $0.5 level.
This trend continues to be a source of frustration for Cardano enthusiasts, who are keen to see ADA surpass the $1 mark to begin its ascent toward the previous high and potentially explore new price highs.
For context, ADA was last seen at $1 precisely two years ago, in April 2022. Cardano was on track to break this jinx in the first quarter of this year when it hit a yearly peak of $0.807 before the bears took over.
Nonetheless, prominent Cardano advocate Dan Gambardello has proposed a timeframe within which ADA supporters might witness the asset at $1. He believes that reaching $1 is within the realm of possibility for ADA in the coming months.
Gambardello voiced this sentiment in his latest analysis of Cardano’s performance in relation to Bitcoin.
Bitcoin Sideways Coming To End! Cardano Path to $1 Mapped Out!
Intro 00:00
Bitcoin weekly almost done consolidating 1:45
One more dip? 4:30
Short term BTC price targets 5:00
Breakout to watch for 6:30
If Bitcoin falls 8:45
Cardano bullish signal 9:45
When will ADA break $1?… pic.twitter.com/xYKt5NzFUW— Dan Gambardello (@cryptorecruitr) May 10, 2024
Cardano Bullish Signal
In his assessment, he hinted that ADA appears to be gearing up for a breakout that could lead to a consistent upward trend. He pointed out that the weekly relative strength index (RSI) for Cardano continues to flash an oversold condition, which he considers a bullish signal.
Additionally, Gambardello observed that Cardano is converging on the 20-week moving average (MA). This technical metric averages out price fluctuations over a 20-week span, offering a more transparent view of the prevailing market direction. When the price of a cryptocurrency is above the 20-week MA, it suggests bullish momentum.
Interestingly, Gambardello demonstrated that when Cardano exhibited an oversold RSI signal in past cycles, its price approached the 20-week MA. He emphasized that such scenarios have historically been the prelude to significant breakouts and substantial price increases.
ADA to $1 by August
In assessing Cardano’s prospects of reaching the $1 mark from the observed bullish signal, Gambardello first examined the asset’s historical performance.
Specifically, he explored the timeframe it took for ADA to surpass the $1 level following the third Bitcoin halving cycle.
The analyst noted that ADA’s present consolidation pattern is reminiscent of the 2019/2020 phase. During this period, ADA traded with a leading zero, ranging from $0.03 in early 2019 to $0.08 in late 2020.
In parallel, Gambardello mapped out the chart pattern that Cardano displayed after its breakout in late 2020 and into early 2021 when it eventually hit the $1 milestone. By theoretically superimposing this pattern onto Cardano’s current chart, he deduced that ADA could potentially return to the $1 price point by August this year.
Notably, ADA’s attainment of $1 from its price of $0.4632 implies that the asset must have grown by 116% in the next 12 weeks.