- Cardano (ADA) is testing a critical $1 resistance that could trigger a rally toward $1.75–$2.
- Analyst Dan Gambardello warns of ongoing market manipulation wiping out leveraged longs.
- ADA’s risk score signals a “pre-bull market” zone, echoing late 2020 conditions.
Cardano (ADA) is hovering near a decisive resistance level, with analysts warning that the next move could determine whether the asset holds a sustained bull run or retreats for further consolidation.
In a recent YouTube update, analyst Dan Gambardello noted that ADA’s brief spike above $1, which lasted only minutes, brought the cryptocurrency right into a multi-year trendline resistance. Gambardello said that the $1 area is a potential “catalyst” for a major breakout if ADA can close daily candles decisively above it.
A Setup Similar to Early 2021?
Gambardello compared the current structure to the conditions seen in early 2021, when Ethereum’s breakout to new highs ignited a broad altcoin rally.
This time, Ethereum sits just “one move away” from its own all-time high, raising the prospect of another altcoin season. For Cardano, the technical roadmap appears clear. A breakout above the $1 mark could trigger a run toward $1.75–$2.
On the macro scale, ADA has just seen its 20-day moving average cross above the 200-day, a bullish crossover last seen ahead of a strong rally in late 2024.
Market Manipulation Clouds the Picture
However, Gambardello cautioned that traders must remain alert to what he described as “mass market manipulation” in the crypto space. He highlighted a recent example where the market’s pullback was engineered by exchanges liquidating over $1 billion in leveraged long positions.
Related: Cardano (ADA) Price Prediction for August 15
Gambardello noted that manipulators run up a nice pump right into new inflation data, and then they liquidate, urging viewers to avoid leverage altogether in the current climate.
Risk Models Point to a Pre-Bull Market Zone
According to Gambardello’s proprietary risk model, ADA currently sits at a score of 43, a level he described as “pre-bull market territory,” comparable to December 2020 before the previous cycle’s surge.
The key question, he said, is whether ADA will trade sideways and consolidate further, or stage a breakout toward higher risk scores, potentially into the 50–60 range, which historically has accompanied strong upward moves.
Short-Term Scenarios
In the immediate term, ADA may need to “cool down” after recent volatility. Gambardello suggested a period of sideways action, possibly into the mid-$0.80s, to allow key moving averages to catch up before another upward push.
However, he didn’t rule out the possibility of a faster breakout if market sentiment turns sharply bullish. In further days, the market could realize ADA’s ability to break its long-standing resistance and transform the $1 level from a ceiling into a support base.
Related: Why Is Everyone Suddenly Googling “Ether”?
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