Experienced market analyst and Cardano supporter Dan Gambardello offers an optimistic outlook regarding potential price movements of ADA.
He published an overview against the backdrop of Cardano's recent rise. According to him, the altcoin may be poised for significant growth after a series of rapid increases. Gambardello noted that a target price of $10 is now becoming more realistic.
Key momentum indicators for Cardano signal growth.
Gambardello highlighted the recent successes of Cardano, noting a significant growth of 168% in just 17 days. This rapid price movement was supported by breakthroughs in key indicators, including the 20-week and 50-week moving averages.
He noted that the current trajectory of ADA reflects its behavior since November 2020. As a result, the analysis suggests a cyclical pattern that may indicate further growth.
A key observation from Gambardello's analysis is the recent monthly candle of ADA, which he described as erasing two and a half years of downward price action.
Eight days before the end of the month, he emphasized the importance of closing above the 50-month moving average, which is currently around $0.72. He also identified the range of $0.75-$0.76 as a key zone on the weekly chart, signaling that the coming days could determine the short-term direction of ADA.
The $10 target for ADA is becoming increasingly realistic.
Gambardello drew parallels between the current price action of ADA and its performance in previous market cycles. He noted that while ADA experienced consolidation at this stage in the last cycle, its current movement shows less cooling.
He suggested that a short-term pullback could sync with historical trends, allowing the market to regroup before a larger rally. Despite the possibility of short-term consolidation, Gambardello remains optimistic about the long-term prospects of ADA.
A potential target of $1.05 has been set in the near term, while a broader target of $5-$10 looks increasingly realistic if the current momentum is maintained. However, the analyst also warned investors to prepare for potential pullbacks with support levels around $0.60-$0.65.
Momentum oscillators are also optimistic.
The market analyst then pointed to the stock RSI and MACD as key momentum oscillators that show increasing upward movement, reflecting a bullish market environment.
The MACD histogram has risen above zero, and the RSI indicates substantial growth potential, both suggesting that ADA has not yet reached its peak.
Additionally, Gambardello emphasized the importance of market sentiment, noting that rapid movements of Cardano may surprise many investors.
He referred to recent optimistic headlines surrounding Cardano, including events in its ecosystem and broader market conditions, as factors that could accelerate its growth.
Short-term goals for Cardano and long-term vision.
In the short term, Gambardello identified $0.86 as a critical resistance level, with the potential for ADA to test the $1 mark in the near future.
He noted that even a 16% increase could push ADA to this milestone within hours, considering its historical volatility. However, he also warned of the possibility of consolidation, especially if ADA returns to the $0.60-$0.70 range.
Looking ahead, Gambardello remains optimistic about the long-term prospects of Cardano. He urged investors to monitor broader market trends, including indicators from other cryptocurrencies like XRP, which recently reached new highs.
