The cryptocurrency trader and analyst Dan Gambardello predicted in his latest YouTube video that the “worst is over” for Cardano (ADA), referring to the overwhelming sell pressure that had plagued the altcoin’s charts in the past few months. He did, however, warn that the altcoin may still experience some volatility and sideways trading during the coming months.
Gambardello’s latest analysis was posted 2 years after ADA reached its all-time high (ATH) of $3.10. The main reason the analyst remains bullish on the altcoin’s prospects is the fact that the Alonzo hard fork event did not play a factor in ADA reaching its ATH back in September of 2021.
Furthermore, ADA’s DeFi ecosystem has grown exponentially during this bear market. Subsequently, the analyst believes that the project has established a strong foundation over the past few months, which may lead to a strong price ascent in the months following the Bitcoin Halving event in April 2024.
Gambardello also shared his belief that ADA’s 90+% price drop during this bear market was necessary. Moreover, he predicted that the altcoin’s reset in price may be bullish as it could attract new investors to the ecosystem, which may lead to increased adoption of the Cardano network.
Despite the bullish outlook for ADA and the Cardano ecosystem, the analyst did warn that ADA’s price may continue to drop in the upcoming few months. Meanwhile, CoinMarketCap indicated that ADA printed a 24-hour gain of 0.18%. As a result, the altcoin was changing hands at $0.2571 at press time.
Daily chart for ADA/USDT (Source: TradingView)
Although Gambardello highlighted multiple bullish fundamental developments within the Cardano ecosystem which may lead to ADA reaching a new ATH, short-term technical indicators suggested momentum was still in favor of sellers. Most notably, the 9-day EMA line was positioned below the 20-day EMA line.
ADA’s price was, however, attempting to flip the shorter EMA line into support. If ADA is able to close a daily candle above the 9-day EMA line within the coming 48 hours, then it may proceed to do the same with the 20 EMA line as well.
This will then clear a path for the altcoin’s price to climb to $0.2920, and may result in the two EMA lines crossing. Should the 9-day EMA line cross above the 20-day EMA line, it will signal a bullish change in short-term momentum for ADA. On the other hand, if ADA’s price is rejected by the 9-day EMA line, then it may retrace to the next support level at $0.2375.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
