- According to Dan Gambardello, there is something in store for Cardano (ADA).
- The weekly chart shows a fading ADA retracement from an all-time high (ATH) of $3.09.
- While the bearish retracement faded, ADA’s TVL sustained a steady rally.
According to Dan Gambardello, founder of Crypto Capital Venture, there is something in store for Cardano (ADA). However, he notes users need to zoom out on the Cardano chart and consider the total value locked (TVL) to uncover the potential of ADA.
Gambardello explained his view using screenshots of the weekly chart on TradingView and Cradano’s TVL chart on DeFiLlama. The price chart shows a fading downward trend of ADA’s retracement from an all-time high (ATH) of $3.09. Cardano reached an ATH on August 30, 2021, in the last crypto market bull run.
ADA’s price retracement coincided with the bear market after the last bull run and has seen the price drop to $0.28 at the time of writing.
On the weekly chart shown by Gambardello, there is an unfolding bullish crossover of two significant moving averages. Although ADA’s price remained below the moving averages, a broader view suggests an impending price reversal. Gambardello included the TVL chart’s screenshot to buttress this opinion.
While the bearish retracement faded, ADA’s TVL sustained a steady rally. At the time of writing, Cardano’s TVL, as shown on DeFiLlama, was $141.48 million. That reflects an addition of more than $90 million to ADA’s TVL since the beginning of 2023.
From Gambardello’s analysis and his suggestion of viewing ADA’s development from a broader perspective, investors can deduce a few things. One is that the bearish momentum is likely coming to an end. Another deduction from his analysis is the steady influx of funds into the Cardano ecosystem, as reflected in the TVL.
Merging both analytical factors suggests Cardano may currently be undervalued in price. That would mean the platform’s native token, ADA, is bound to reverse the current downward trend. If that becomes the case, ADA’s price could climb above the indicated moving averages for the first time since the beginning of 2022. That would imply the start of a long-term rally that could take the price to new heights.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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