Altcoins, including Cardano, are forming a classical “W”-shaped Bollinger Band in the daily chart, suggesting an impending explosive move.
Market expert Dan Gambardello shared in his October 20 market analysis that Cardano, like most altcoins, may have bottomed. He drew this concept from a rapidly developing indicator on the ADA chart, which has historically marked the start of a parabolic expansion.
Bullish Cardano Price Development
Gambardello started off the analysis by highlighting a tweet from John Bollinger, a seasoned financial analyst, which identified a “W” double bottom formation on altcoins Ethereum and Solana but not on Bitcoin. Bollinger urged keen attention on this indicator, as it could mark a significant market shift.
Meanwhile, Gambardello highlighted that this formation is also visible on the Cardano chart. This pattern started to form when ADA dropped to $0.279 on the Binance chart on October 10, then rebounded to a high of $0.733 on October 14.
The final bottom formed with its drop to $0.593 on Friday, with a rebound over the past three days completing the structure. The formation now sets Cardano up for further upside, as history suggests.
Nonetheless, Gambardello mentioned that Cardano needs to claim the Bollinger baseline for a sustained rally. The trendline stands at $0.75, and Cardano must rally by 11.7% from the current market price to reach the price mark.
Gold Top and Bitcoin Dominance to Fuel Uptrend
Further fueling the expert’s bullish Cardano and altcoin stance are developments in gold and the Bitcoin dominance. He highlighted that Ethereum has a risk score of 47, suggesting there could be more room for upsides.
Moreover, Ethereum had a similar score in November 2020, when gold topped for the cycle. From there, altcoins went parabolic, with Cardano reaching its current all-time high of $3.10. He suggested that a similar event could occur as gold’s momentum slows down, sending ADA higher again.
Additionally, he mentioned the possibility of a Bitcoin dominance capsize. The 20-day moving average on the BTC.D chart recently moved above the 50-day, marking a bullish momentum shift. However, a similar occurrence in July saw the Bitcoin dominance trend slightly higher before capitulating to September low of 57.17%
These plays align with the bullish Cardano projection, with the double bottom further adding to the favorable momentum. While Gambardello did not mention targets for Cardano, past analysis suggests that the 10th-largest cryptocurrency by market cap could rally to $8.5.
Other analyses also predicted that ADA could exchange hands between $5 and $8 before the end of this cycle, while others expect a push to $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.
