A decisive move for Cardano could happen very quickly, as a top market analyst highlights possible bearish and bullish targets.
Amid Bitcoin’s recent drop to $113,000, Cardano recorded its second consecutive daily bearish closing yesterday despite temporarily becoming the 8th largest cryptocurrency by market cap. It has now reclined further from its multi-month high of $1.02 on August 14, retracing 16.6% to its current market price of $0.85.
Further Cardano Retracement Possible
Meanwhile, Cardano permabull Dan Gambardello said in his Tuesday analysis that the Cardano price manipulation could persist. He noted that ADA continues to trend below its bull market door, after seeing its bullish momentum curbed by a resistance neckline. According to him, prices could go lower.
Currently, Cardano trades above the 20-day and 50-day moving averages (MA) respectively at $0.82 and $76. Gambardello predicted that ADA could retest these areas in a high-low price swing if the bearish momentum persists, presenting a good entry opportunity.
He further employed a Fibonacci retracement to determine how low Cardano can go, based on the recent floor of $0.685 on August 2. This showed that ADA could drop to the golden pocket retracement level at $0.81 or further lower to the 0.78 Fib level at $0.75. This is in confluence with the earlier-mentioned moving averages.
Cardano Bullish Move Could Happen Quickly
Nonetheless, the analyst insisted that Cardano could rebound from any of the areas if bulls step in quickly. He noted that finding support in any of the moving averages would set the tone for a higher price move to retest the trendline above $1.03, where it faced rejection last week.
Moreover, conquering this neckline resistance would further set ADA on the path to reaching the bull market door at $1.25 and beyond. If it breaks out of this zone, Gambardello shared that the next target is $2, insisting that this move could happen “very quickly.”
Notably, a rally from the current market price to $1.25 and $2 represents a 47% and 135% growth, respectively.
Much Higher Targets for Cardano
Remarkably, Gambardello had earlier projected higher price targets for Cardano should it rally past the bull market door at $1.25. He asserted that ADA would reach a new all-time high of $10.025 upon breakout, a 1,079% increase from the current price.
However, he also agreed earlier that $7.5 is a more realistic target for this Cardano bull cycle, expected to end in three to six months after Bitcoin’s peak. He leveraged analysis from Zero AI to forecast this target.
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