Cardano (ADA) Will Grow 1,000% Against Bitcoin (BTC): Analyst
NOIDA (CoinChapter.com) — Cardano’s (ADA) price action has recently slowed, falling close to support levels. The token’s price action comes following the much-discussed Chang upgrade, which aimed to boost Cardano’s functionality.
While the upgrade is now part of the past, recent developments in ADA’s price patterns have analysts paying attention. An independent analyst recently observed a familiar bullish pattern on ADA’s chart, hinting at a potential price breakout reminiscent of a historical rally.
Bullish Divergence Sparks Optimism for ADA
Crypto analyst Dan Gambardello recently highlighted a bullish divergence on the ADA BTC pair‘s price chart, drawing parallels to a similar pattern from 2020. In his tweet, Gambardello pointed out that Cardano (ADA) rallied over 1,100% against Bitcoin the last time such divergence appeared.
Gambardello believes ADA BTC might be looking at a potential 1,000% rally.
Back in 2020, ADA gained 1,146%, climbing from 0.00000470 BTC to 0.00005768 BTC over 245 days. Currently, ADA’s price hovers near 0.00000578 BTC, a level similar to the pre-rally position seen four years ago.
If ADA were to achieve a rally comparable to the last one, it would mean a potential price target near 0.0000728 BTC ($4.1), representing roughly a 1,146% increase from its current price level.
ADABTC price chart with bullish RSI divergence. Source: Tradingview
However, the bullish setup depends on ADA breaking above current resistance levels. Without this confirmation, the divergence may not lead to a price surge and could result in a bull trap.
The broader market environment differs from that of 2020, with Bitcoin’s influence and macroeconomic conditions playing significant roles.
While the technical setup points toward a bullish breakout, the overall market environment must be considered. The macroeconomic conditions and Bitcoin’s performance could influence ADA’s ability to replicate its previous price surge.
This bullish setup could attract buyers, but caution remains warranted, as external factors may limit ADA’s upward momentum. Furthermore, not all technical indicators forecast bullish times for the Cardano token.
Bearish Setup Reminds Bulls To Temper Expectations
The ADA USD pair has formed a bearish technical setup called the ‘descending triangle.’
ADAUSD pair formed a bearish setup with a 71% downside target. Source: Tradingview
Analysts recognize the descending triangle as a bearish continuation pattern. The configuration features a declining upper trendline that compresses price action into lower highs, while a flat lower trendline serves as consistent but weakening support.
The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.
In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Pepe coin’s price recently broke out of this descending triangle, only for bulls to push it back within the pattern.
However, if the Cardano token’s price confirms the bearish setup, the ADA USD pair could plummet by over 71%, reaching a target near $0.094.
A breakout below the pattern in the current market climate could be catastrophic for ADA prices, potentially resulting in significant losses for the trading pair.
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