In a recent analysis by Dan Gambardello, the founder of Crypto Capital Venture, Cardano (ADA) is poised for a bullish turn despite the current price dip, presenting a promising outlook for the broader cryptocurrency market. Gambardello highlighted a familiar bullish pattern taking shape.
Gambardello’s insights, shared in a video upload, revealed that ADA replicates a move observed in 2020 following the Bitcoin halving. The pattern involved ADA establishing a swing high, retracing to a bottom, and initiating a prolonged rally. Drawing parallels with the past, Gambardello emphasized that this breakout coincided with Bitcoin breaching its bull market doors.
Anticipating a repeat of the 2020 structural break, Gambardello pointed out the current downward retracement in ADA, mirroring the previous cycle’s movement. A closer examination of the ADA daily chart showcased the ongoing development of the bullish structure.
Cardano’s (ADA) Bullish Signal
Employing historical data, Gambardello indicated that ADA’s present situation indicates a potential short-lived rally toward the 50-day moving average region. However, he cautioned that resistance at this level might prevail, particularly as the 50-day moving average crossed above the 20-day moving average on the daily chart.
While Cardano’s price structure resembles the 2020 pre-bull run pattern, Gambardello highlighted an interesting deviation in the timeline. Unlike the 2020 breakout, which followed the Bitcoin halving, the current bullish signal for Cardano is emerging several months ahead of the next halving event. This premature indication adds a layer of anticipation to the unfolding scenario.
According to Gambardello, a surge in Bitcoin’s value above its current high could lead to an early increase in Cardano’s value. He emphasized the potential impact, stating that if Bitcoin continues to rise in value, it could positively affect the entire cryptocurrency market. This means that what may seem like a temporary increase in the value of Cardano could turn into a more significant and sustained upward trend, especially if it manages to surpass the 50-day moving average.