Top Analyst Shares Cardano Exit Strategy for Maximum Gains All the Way to an $8.5 Target

A top market watcher has shared his exit strategy for Cardano, which he suggested will be crucial for maximum gains this bullish cycle.

Dan Gambardello shared his strategy to maximize the impending Cardano price explosion in a May 8 tweet. He insisted that such preparedness for the rally is crucial for profitability, as a lack of it would mean investors have nothing to show for despite severe market upsides.

He shared a template for this exit strategy using a simplified model customized to highlight asset holdings, average entry price, and price targets. Furthermore, he mentioned potential selling levels using technical analysis of ADA’s price development compared to the previous cycle.

Cardano’s Current Market Dynamics

Gambardello stressed that ADA’s current long-term risk score stands at 39, which he categorized as a moderate buy area. He identified this indicator as suggesting that the coin still has more in the tank and the current position is a good place to buy into the asset.

Interestingly, he noted that Cardano had a similar score on June 6, 2020, when prices were at $0.086. The asset went on to rally 3,574% to its all-time high of $3.160, confirming the early entry point that current levels provide.

Meanwhile, he noted that if his price outlook proves true, Cardano would surge to between $5 and $10. In terms of potential catalysts for this run, the analyst cited the current bullish clouds around the cryptocurrency industry poised to attract trillions and the Cardano ecosystem’s plot to unlock Bitcoin DeFi.

Exit Strategy for ADA’s Rally

He then presented a program with which investors could navigate their investments. First, Gambardello established that he would use an asset holding of 100,000 ADA and an entry price of $0.5 for the experiment. This translates to an initial investment capital of $50,000.

Furthermore, he noted that for a risk-averse holder, the bull market door at $1.25 would be the first sell target. Notably, he would sell 10,000 ADA at the price with a total gain of $7,500.

Meanwhile, he discussed taking another profit between the bull door and Cardano’s all-time high, setting the second sell order at $2.5. At that point, he would sell another 10,000 ADA with a total profit of $27,000.

Further, his third sell order would come above the all-time high, specifically at $3.80. He would sell another 10,000 ADA, with a $60,000 profit. Interestingly, Gambardello stressed that the best time to make decisive profit-taking decisions is at the price discovery range; hence, he increased his sell strategy above $3.80.

For context, he noted he would place sell orders of 15,000 ADA at $5.20 and another 15,000 ADA at $6.25, realizing $217,250, with 40,000 ADA left. He further confirmed adding a price target of $8.5 and selling 10,000 ADA there.

Interestingly, the analyst plans to sell 70,000 ADA for a 100,000 ADA portfolio, with a potential total profit of $330,250 and a realized return on investment of 660.50%.

Cardano Clears Crucial Resistance

Notably, Cardano’s renewed momentum has seen it trend above a resistance boundary, impeding a rally to higher prices. Analyst Ali Martinez identified this resistance, which lies at around $0.74, in a recent X analysis.

#Cardano $ADA looks poised for a breakout toward $0.80. But first, it needs to clear the upper boundary resistance of this channel. pic.twitter.com/47HpHQA3hs

— Ali (@ali_charts) May 8, 2025

The resistance lay within a descending channel on the 4-hour time frame, which has checked ADA’s price for two weeks. As Martinez highlighted in the commentary, the asset would target levels above $0.80 after the breakout.

In the meantime, Cardano trades at $0.785.