[Why Cardano (ADA) could be the next big thing in the cryptocurrency industry]
Cardano’s native token ADA is poised to witness explosive growth over the long term, with the technical picture turning bullish. According to supporter Dan Gambardello, the daily chart is currently showing six consecutive green daily candles, and the weekly chart is also hinting at an upcoming bullish trend.
In a podcast, Gambardello said that ADA’s daily price chart shows signs of a “long-awaited general economic reversal” that could signal the beginning of an altcoin bull run. Historically, Bitcoin has typically entered a significant consolidation phase following its halving, but this time it appears to be in sync and may lead to new highs in the near future.
However, the relative strength index (RSI) on the daily chart shows that the altcoin is overbought, suggesting a short-term correction is likely. Although ADA has reclaimed the 20-day and 50-day moving averages, a pullback to test the previous lows is possible before reaching new highs.
Analyzing the monthly chart, Gambardello noted that ADA’s price action is poised for a breakout. The RSI on the monthly chart indicates that there is still considerable time left in the crypto bull cycle, with an RSI value of 47 showing that bears are still in control. The MACD histogram also shows a similar pattern as during previous bull markets, with the current slight consolidation leading to higher prices.
Based on the weekly chart, ADA's price trajectory appears to be aiming to reclaim the 50-week moving average. A close above this level would be a strong bullish signal.
Importantly, the Cardano ecosystem continues to expand functionality and introduce new governance structures. The community has begun preparing for Cardano’s Chang hard fork and recently announced the launch of Cardano Node 9.0.0, which introduces key changes to the governance of the ecosystem.
