Cardano (ADA) is set to witness a massive rally, said analyst Dan Gambardello.
Gambardello added that a short correction/pullback is possible in the short term.
Indicators like RSI and MACD suggest that the ADA price action is just at the launchpad.
ADA, the native token of the Cardano blockchain, could witness explosive growth in the long-term as technicals turn bullish. According to Cardano bull Dan Gambardello, the current Cardano daily chart reveals promising signs with six consecutive green daily candles. Meanwhile, the weekly chart also suggests an upcoming bullish move.
In a podcast, Gambardello stated that the ADA daily price chart (below) shows signs of “a long-awaited macro reversal,” potentially signaling the start of an altcoin bull market. Historically, Bitcoin halvings have been followed by significant consolidation phases, but this time, they appear to be occurring concurrently, said Gambardello. Notably, this consolidation phase could lead to new highs in the near future.
However, the Relative Strength Index (RSI) on the daily chart indicates that the altcoin is overbought, suggesting a possible short-term correction. While ADA has reclaimed the 20-day and 50-day moving averages, pullbacks to test previous lows could occur before new highs are reached.
As of press time, CoinMarketCap data shows ADA’s price at $0.4391, up nearly 2% in the past 24 hours. The altcoin’s trading volume has dropped 4.54% to $374 million. Meanwhile, ADA’s market cap is $15.75 billion, making it the 10th largest cryptocurrency. In the past seven days, the digital asset has risen more than 25%, outperforming Bitcoin (BTC), Ether (ETH), and Solana (SOL).
Analyzing the monthly chart, Gambardello noted that ADA price action is poised for a breakout. The RSI on the monthly chart suggests there’s still considerable time left in the crypto bull cycle. The value of the RSI is 47, which suggests that bears are still in control. The MACD (Moving Average Convergence Divergence) histogram also shows patterns also seen during previous bullish periods, said Gambardello, adding the slight consolidation being witnessed currently will eventually result in higher prices.
Finally, based on the weekly chart (below), ADA’s price trajectory appears to be aiming to reclaim the 50-week moving average. Closing above this level would be a strong bullish signal, according to Gambardello.
Importantly, the Cardano ecosystem continues to expand and introduce new governance structures. The community has begun preparing Cardano for its Chang hard fork and recently announced the release of Cardano Node 9.0.0, which introduces key changes to the ecosystem’s governance.
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