Prominent analyst Dan Gambardello argues that the Cardano bull market is still in effect despite ADA hitting a fresh bottom for this year.
On Monday, Cardano was a major victim of the bearish force that held the crypto market to ransom. Specifically, ADA collapsed to $0.27 after a 20% dump, establishing a lower low compared to last month’s $0.321 bottom. Accordingly, ADA has tanked by over 65% from the $0.81 yearly peak set in March.
This performance has caused many to lose hope in ADA as it continues to set new lows during each significant market shakeout. However, analyst Gambardello believes there is no cause for alarm for ADA, arguing that Cardano is still on course with expected performance based on historical data.
Cardano Still on Track with History
Gambardello cited data showing similarities between this cycle and previous ones. First, he pointed out that ADA only shows an 89% decline from its all-time high. He claimed it is comparable to the 93% drop observed around 100 days after the Bitcoin halving in the last cycle.
Furthermore, Gambardello stressed that while the current chart looks grim, Cardano’s fundamentals remain strong. He disclosed that his confidence in ADA increased amid Binance’s recent upgrade to support the impending Cardano hard fork.
The technical update to the Cardano network will enable on-chain governance and participation from ADA community members.
Meanwhile, Gambardello highlights potential bullish divergence on the weekly RSI, suggesting that ADA could be setting up for a reversal. He acknowledges the pain of the recent dip but emphasizes that similar patterns have played out in past cycles, often followed by substantial recoveries.
The analyst clarified that ADA is not underperforming in an altcoin season where Bitcon’s dominance is low. Instead, its lackluster movements are on par with the last cycle’s trend before it reversed, leading to the all-time high at $3.10.
What Gambardello is Watching on Cardano Charts
In the short term, Gambardello is watching for ADA to move toward its moving averages (20, 50, 200) and flip the momentum from lower lows to higher highs. Historically, post-Bitcoin halving periods have been altcoin seasons, and he believes ADA is primed to benefit from this trend once Bitcoin dominance starts to fall.
As a result, Gambardello stressed that Cardano’s bull cycle is “not canceled,” and its movements are “normal.” Yet, he urged ADA enthusiasts to be prepared for anything.
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