Cardano Price Analysis: Will New Developments Push the Price Up?
Cardano investors are going through a tough time. The leading altcoin has lost about 65% of its value since March. However, analyst Dan Gambardello suggests that a rally could soon occur due to new developments and technical indicators.
Gambardello, known as a Cardano supporter, shared his views on this subject in his latest video. BinanceHe highlighted important developments such as ’s support and upgrade of Cardano’s hard fork. This hard fork aims to improve on-chain governance, which is critical to the Cardano ecosystem.
As of now, ADA is down nearly 90% from its all-time high. According to the analyst, this massive drop is similar to the previous cycle where ADA dropped 93% approximately 100 days after the Bitcoin halving.
Additionally, Gambardello notes that Bitcoin dominance has been increasing since October 2022, which has historically signaled tough times for altcoins like Cardano. Investors are now expecting a reversal of Bitcoin dominance and the start of a new altcoin season.
Gambardello noted that on the weekly chart, ADA is showing a higher low in the Relative Strength Index (RSI) despite lower price levels, which could be a potential bullish divergence. He also noted that ADA is interacting with its 20-week and 50-week moving averages, which recently crossed, which could signal a consolidation phase followed by an uptrend.
While the Stochastic RSI has not yet shown that ADA is oversold, a higher low in the Stochastic RSI could set the stage for a significant bullish move. While ADA has been exhibiting choppy price action since March, analysts view these adjustments as bullish signals.
Historically, ADA has been moving toward key moving averages after reaching oversold conditions on the RSI. If the trendline holds, ADA could target the 20 and 50 moving averages and reverse momentum from lower levels to higher levels. This critical point is similar to the previous cycle, suggesting that the current consolidation is part of regular market behavior.
At the time of writing, Cardano is recovering along with the broader market after yesterday’s major drop, with ADA trading at $0.3308, up 10% in the last 24 hours.
