Cardano Analyst Predicts Potential 1,000% Rally for ADA Against Bitcoin
- Analyst Dan Gambardello predicts potential 1,000% rally for ADA against Bitcoin.
- ADA posts 2.5% increase but investors still face 9.4% weekly losses.
- Bullish divergence in ADA/BTC pair resembles 2020 pattern preceding major surge.
Cardano (ADA) finds itself at a potentially pivotal juncture as renowned analyst Dan Gambardello identifies a bullish divergence in its price action against Bitcoin, drawing striking parallels to a similar pattern observed in 2020.
This technical formation has sparked speculation about a possible massive rally for ADA, reminiscent of its previous 1,000% surge.
Despite recent struggles to break out of the $0.30 price channel following the implementation of the Chang hard fork, ADA has shown signs of life with a 2.5% price increase.
However, this modest uptick offers little consolation to investors who bought in a week ago, as they currently face losses exceeding 9.4% with ADA trading at $0.3263.
Cardano analyst identifies a bullish divergence
Gambardellos analysis focuses on the ADA/BTC trading pair, where he identifies a bullish divergence that mirrors the 2020 pattern preceding ADAs meteoric rise.
This technical formation occurs when an assets price makes lower lows while momentum indicators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) form higher lows, suggesting waning downward momentum and the potential for an imminent reversal.
The chart shared by Gambardello illustrates ADAs price relative to Bitcoin remaining in a downtrend while the RSI and MACD show rising momentum.
This disconnect between price action and underlying strength indicators closely resembles the setup that preceded ADAs previous all-time high, lending credence to the possibility of another significant breakout.
Currently, the ADA/BTC pair trades at 0.00000573 BTC. If history were to repeat itself with a 1,000% rally, this value could expand elevenfold to 0.00006303 BTC. Translating this percentage growth to ADAs dollar value would place the asset at approximately $3.553, slightly above its 2021 all-time high.
Read more: https://thenewscrypto.com/cardano-analyst-predicts-potential-1000-rally-for-ada-against-bitcoin/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
