A crypto analyst has claimed that Cardano recent price dip is a sign of an impending bullish breakout, similar to the one that occurred in 2020. Dan Gambardello, the founder of Crypto Capital Venture, used a weekly chart of ADA/USD to demonstrate how the cryptocurrency is following a familiar pattern that could lead to a massive rally.
Gambardello uploaded a video on Jan 27, 2024, where he showed that ADA had replicated its movement in 2020 after the Bitcoin halving. He explained how ADA reached a swing high, then retraced to a bottom, before launching into a prolonged uptrend. He said that this breakout coincided with Bitcoin breaking its bull market doors.
Gambardello said that he expects the same structure to break in 2024, as ADA/USD has started a downward correction, similar to the previous cycle. He zoomed in to the daily chart of ADA/USD and showed that the bullish structure is still intact.
However, he also pointed out that ADA’s current scenario indicates a short-term rally to the 50-day moving average area. He predicted that the resistance would hold and ADA would fall, especially as the 50-day moving average has crossed over the 20-day moving average on the daily chart.
Cardano Ahead Of Schedule
Gambardello noted that Cardano’s price structure is ahead of schedule, compared to the 2020 cycle. He said that Cardano’s breakout in 2020 happened after the Bitcoin halving event, which occurs every four years. This time, there are still several months before the next Bitcoin halving, but the bullish signal is almost ready.
He also suggested that a sudden Bitcoin surge above the current swing high could trigger an early breakout for Cardano. He speculated that if Bitcoin keeps rising from its current price, it could pull the rest of the crypto market with it. Therefore, the anticipated short-term Cardano rally could turn into a more sustained bullish trend, with a breach of the 50-day moving average.
Related Reading | BlackRock’s Bold Move: Bitcoin Dominates Equity-Bond Portfolio
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
Comments (No)