- ADA price is down by 65% since March amid market turmoil.
- Binance supports Cardano’s crucial hard fork for governance.
- Dan Gambardello predicts a potential bullish reversal based on technical indicators.
Cardano (ADA) holders are in a trying period, with the cryptocurrency experiencing a sharp decline of around 65% since March. Despite this, new developments and technical indicators, explained by analyst Dan Gambardello, suggest that a bullish turnaround might be imminent.
Gambardello, a well-known pro-Cardano analyst, recently discussed these insights in a detailed video. He emphasized Binance’s recent upgrade and support for Cardano’s hard fork as a significant positive development. This hard fork is set to enhance on-chain governance, a crucial step for Cardano’s ecosystem.
Currently, ADA is down approximately 90% from its all-time high. According to the analyst, this steep decline is similar to the last cycle, when ADA dropped around 93% roughly 100 days after the Bitcoin halving.
Furthermore, Gambardello observed that since October 2022, Bitcoin dominance has been rising, which historically signals tough times for altcoins like ADA. Investors are now waiting for a reversal in Bitcoin dominance, which could be the push for a new altcoin season.
Gambardello points to potential bullish divergence on the weekly chart, where ADA shows a lower price low but a higher low on the Relative Strength Index (RSI). He also cited ADA’s interaction with its 20-week and 50-week moving averages, which recently crossed, suggesting a consolidation phase before a bullish move.
The stock RSI has yet to indicate that ADA is oversold, but a higher low on the stock RSI could set the stage for a significant upward move. While ADA has displayed volatile price patterns since March, the analyst sees these setups as a bullish signal.
Historically, ADA hits oversold conditions on the RSI before moving towards crucial moving averages. If the trend line holds, ADA could target the 20 and 50 moving averages, flipping momentum from lower lows to higher highs. This critical point mirrors the last cycle, suggesting that current consolidation is a part of regular market behavior.
At press time, Cardano is recovering alongside the broader market from yesterday’s massive fall. ADA has registered a 10% in the last 24 hours, trading at $0.3308.
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