In a recent series of tweets, crypto analyst Dan Gambardello shares his optimistic outlook for Cardano (ADA), predicting a potential bullish confirmation in the near future.
Gambardello’s technical analysis suggests that ADA’s price could break above a key resistance channel, signaling a positive trend for the altcoin.
Gambardello acknowledges the impact of recent SEC lawsuits against major exchanges but emphasizes that ADA has more ground to recover compared to other cryptocurrencies like Bitcoin and Ethereum.
He points out that ADA’s recent trading activity shows promising signs, with the altcoin trading above the 20-day moving average (MA) line, a positive indicator.
The analyst notes that ADA has been rejected by the 20-day MA multiple times in recent weeks, but its ability to remain above this line is seen as a positive development.
Furthermore, Gambardello highlights the daily Relative Strength Index (RSI), which has moved away from extremely oversold territory, indicating a potential shift in momentum for ADA.
Gambardello suggests that if ADA receives buying pressure from bulls, its price could aim to reach $0.32, a significant resistance level. Breaking above this level could serve as a strong bullish confirmation for ADA’s future price movement. On the downside, a drop below the 20-day MA line may lead to a target price of around $0.22, representing a potential 8%-9% move.
Traders and investors are advised to monitor ADA’s interaction with the 20-day MA line as it may provide early indications of ADA’s short-term price direction. A sustained support above the line could propel ADA towards $0.32, while a break below it may result in a decline to $0.22.
In a subsequent tweet, Gambardello expresses his belief that ADA will outperform other cryptocurrencies in the next bull market. At the time of writing, ADA has already demonstrated a 1.60% gain over the past 24 hours, trading at $0.2966, further fueling optimism among ADA holders and enthusiasts.