Cardano analyst Dan Gambardello predicts a potential 1,000% rally for ADA against Bitcoin, citing a bullish divergence similar to 2020’s surge.
Today, Cardano has posted an over 2.5% price increase after failing to break out of the $0.30 price channel following the network’s incorporation of the much-anticipated Chang hard fork.
Despite the slight uptick, investors who bought ADA a week ago are still nursing losses of over 9.4%, with ADA currently trading at $0.3263. However, according to renowned pro-ADA analyst Dan Gambardello, better days could be just ahead for ADA investors based on a promising technical formation.
Gambardello expressed this bullish outlook after analyzing ADA’s historical price action against Bitcoin. Specifically, he pointed to a striking bullish divergence in the ADA/BTC trading pair, a pattern that has historically signaled a major price reversal.
Taking to X to disclose his findings, Gambardello highlighted that this bullish divergence resembles a pattern seen in 2020. He stressed that the formation came right before ADA’s 1,000% surge against Bitcoin.
Cardano Bullish Divergence
For context, a bullish divergence occurs when a cryptocurrency’s price is making lower lows while the relative strength index (RSI) or moving average convergence divergence (MACD) indicator is making higher lows.
Notably, the divergence in price and indicators suggests that downward momentum is withering and that a reversal to the upside may be imminent.
The ADA/BTC chart Gambardello shared shows a bottom price in which the price of ADA relative to BTC remains in a downward trend. Meanwhile, the RSI and MACD show rising momentum.
According to Gambardello’s chart, this setup mirrors a similar technical pattern that occurred in 2020. Back then, despite a declining price, ADA’s growing RSI signaled a shift in underlying market strength, which led to a meteoric rise shortly after. Notably, the breakout that followed led to an all-time high in Cardano’s price.
ADA Price if it Repeats History
Now, the Cardano analyst draws parallels between the current and past market conditions, suggesting that ADA could again stage a massive breakout.
At press time, ADA/BTC is worth 0.00000573 BTC. If it repeats history and rallies 1,000%, the price will expand by 11X to 0.00006303 BTC. Factoring in a similar percentage growth on ADA’s dollar value would put the asset at $3.553, just above its 2021 all-time high.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
