- Nick Valdez signals a possible Cardano (ADA) rally due to bullish divergence on the ADA-BTC chart.
- Macroeconomic trends, including a high likelihood of an interest rate cut, could boost ADA’s appeal.
- The launch of the Snake.Fun platform in the Cardano ecosystem may further drive investor excitement.
Cardano (ADA) may be gearing up for a major price surge, according to analyst Nick Valdez. In a podcast, Valdez outlined three key factors suggesting Cardano could see substantial gains in the coming months: historical chart patterns, macroeconomic conditions, and the launch of a new project on the Cardano network.
Bullish Divergence Signals Major Upside Potential
Valdez’s analysis centers around a rare bullish divergence on the ADA-BTC daily chart. According to Valdez, the last time this pattern occurred in 2020, Cardano rallied over 1,000% against Bitcoin. This divergence, where prices are dropping but the relative strength index indicator is rising, suggests that despite the price declines, momentum is building.
Notably, this analysis comes at a time when ADA investors are facing significant losses. ADA is down over 19.2% in the last 90 days and 42.26% year-to-date.
However, Valdez emphasizes that the current bullish divergence hints at a potential reversal. Historically, this pattern has led to significant price increases, and the current setup could push Cardano even higher, especially if Bitcoin’s price rallies.
Interest Rate Cuts Could Boost Risk-On Assets Like Cardano
Valdez also points to the macroeconomic landscape as a potential driver for Cardano’s performance. With a 96% chance of an interest rate cut by the Federal Reserve on September 18, he noted that lower rates could make riskier assets like Cardano more attractive to investors.
Read also: Cardano Bull Dan Garbadello Discusses How ADA Will Survive Recession
“When interest rates are high, cash earns interest without doing anything,” Valdez explained. “But when rates are cut, investors look for higher returns elsewhere, which leads them to assets like Bitcoin, Cardano, and Ethereum.”
This shift in investor behavior could provide another catalyst for ADA, as lower interest rates often lead to increased demand for cryptocurrencies.
Snake.Fun Launch Adds Excitement to the Cardano Ecosystem
The third key factor, according to Valdez, is the launch of Snake.Fun, a meme-based platform designed to compete with Solana’s Pump.Fun. Valdez pointed out that Pump.Fun’s launch coincided with a 140% increase in Solana’s price over two months, and he expects Snake.Fun to bring similar excitement to the Cardano ecosystem.
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