Cardano permabull Dan Gambardello has dissected the current Cardano market sentiments and near-term outlook amid aligning bullish ingredients.
Notably, Gambardello shared this in a September 8 analysis. He highlighted what the charts and indicators reveal and how to capitalize on the impending bullish momentum.
The Current State of Cardano
Right now, Cardano trades at $0.838, up 1.37% in the past 24 hours. It continues to consolidate around the price mark after a strong rejection at $1.020 in August.
Meanwhile, Gambardello buttressed data from Santiment last week, which shared that retail sentiments on Cardano are trending deeper into the bearish territory as the sideways trend persists. This comes at a time when whales have rekindled interest in ADA, handing them a good opportunity to buy at a discounted price.
Furthermore, he highlighted that this would mark a price divergence for Cardano. Historically, when retail bearishness reaches intense levels, prices usually shift in the opposite direction.
Aligning Bullish Factors for Cardano
Further fueling Gambardello’s bullish sentiment are possible positive developments in the coming weeks. He assured that things could change quickly from the current bearish market state, as all the ingredients for a price explosion are coming together.
One of the catalysts mentioned for a bullish reversal of Cardano is the impending launch of Cardano spot exchange-traded funds (ETFs) in the United States. Drawing inspiration from how the products drew institutions to Bitcoin and Ethereum, and with its October deadline approaching, he outlined that pent-up liquidity could be on its way, with an explosive price action following.
The analyst also mentioned that this aligns with the CLARITY Act timeline. The bill, also known as the market structure bill, passed in the US House in July. This raised optimism that it would see the same bipartisan support in the US Senate and become a law in the near term.
Meanwhile, the September interest rate cut is the closest bullish catalyst on the radar. The optimism that the US Fed will slash rates continues to grow, with the chance of a 25-bps cut this month standing at 87% on Polymarket.
Furthermore, the Cardano permabull noted that the weekly oscillator also appears to be in a good position. The relative strength index (RSI) has reset from overbought territory following the late 2024 rally, spurred by slashed interest rates and bullish sentiments following Donald Trump’s victory.
He added that this means there is a lot of room for higher prices. For context, the RSI stands at 54.19, far below the overbought territory.
Cardano Breakout Level
For ADA’s breakout point, Gambardello highlighted the area at $1.87. He noted he is keeping tabs around the level, and Cardano breaking above it places it on course for much higher prices.
Notably, the area aligns with an ascending trendline on the weekly chart. Cardano faced resistance at the neckline in March and December 2024, and breaking above it could spell a fresh wave of bullish momentum.
The rally would see it flip through an area he earlier identified as the bull market door. When this happens, it could open Cardano up to unprecedented prices, such as $7.5 and $10.
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.
