Cardano (ADA): Does This 4-Year Trend Hint At A Potential Rally?

Dan Gambardello, founder of Crypto Capital Venture, hinted at a potential rally for Cardano (ADA) based on a four-year price trend. A long-time Cardano supporter, Gambardello has always projected a massive uptick for ADA.

His latest analysis on ADA has raised optimism among investors in the Cardano Community.

Dan Gambardello’s Current Cardano Market Outlook

In an X post, Gambardello shared a Moving Average Convergence Divergence (MACD) chart spanning a previous cycle in 2020 with the current season.

🚨 Insane bullish divergence on the ADA/BTC daily chart.

Last time this happened 4 years ago, Cardano rallied over 1,000% against Bitcoin. pic.twitter.com/cR0uqkIcTe

— Dan Gambardello (@cryptorecruitr) September 5, 2024

Comparing both charts, Gambardello highlighted a bullish divergence on the ADA/BTC daily chart. This trend showcased the potential for a macro reversal. He pointed out that Cardano rallied over 1,000% against Bitcoin when a similar divergence appeared in 2020.

The histogram’s current movement mirrored patterns seen at the start of previous bull markets. The 2020 chart showed Relative Strength Index (RSI) exhibiting room for growth, with the current levels moving similarly.

Market experts believe this could be a huge opportunity for ADA if history repeats. Moreover, numerous green candles were also spotted on the daily chart, indicating bullish momentum.

A breakout above the 20-day and 50-day moving averages has now been identified as ADA’s crucial milestone. Gambardello’s latest Cardano analysis has been met with conflicting reactions from the crypto community.

While some are highly expectant for an upcoming Cardano bull run, others think the altcoin season is yet to arrive.

Cardano’s Ongoing Ecosystem Engagements

Even so, Cardano continues to pursue some key ecosystem engagements. Chief among these is the introduction of the Chang hard fork change upgrade.

The network completed the first phase of this upgrade on September 1, ushering in the Voltaire era of decentralized governance. As a result, Cardano has now become one of the first major blockchain networks to implement a token-based governance system.

ADA holders can now help improve the Cardano network by voting on future technical changes and improvement proposals. Cardano’s founder, Charles Hoskinson, described the new governance structure as self-sustaining and unstoppable.

According to him, Cardano’s growth is unmatched, surpassing Bitcoin, the world’s leading digital asset. Other developments besides the hardfork upgrade in the Cardano ecosystem include a potential integration with the Algorand blockchain.

Hoskinson thinks combining forces with Algorand might help expedite the network’s evolution. Notably, he suggested that Algorand become a partner chain. With his proposal, he sees Minotaur innovation being pushed to its boundaries.

Will ADA Price Retest $1 Soon?

ADA has shown signs of bullish momentum in the past 24 hours after exhibiting sideways movement for some weeks. The crypto regained its place as the tenth-largest cryptocurrency by market capitalization, eclipsing Toncoin (TON).

Within the last 24 hours, ADA’s price surged by 3.5% to $0.3303. However, the trading volume remained subdued, decreasing by 22% to $253 million in the past day.

Despite this reduced investor interest, ADA’s ability to retest the $1 is not impossible. ADA has achieved an unsustained breakout over the $1 threshold several times. Therefore, retesting the $1 mark again shouldn’t be so difficult.

Besides, current indications show the worst appears over for the coin, and it is on track to ride a bullish momentum, in keeping with Gambardello’s observations.

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