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- Unlike BTC, ADA does not need Fibonacci to break the bull market door, Gambardello said.
- The ChoCh and break of structure would help ADA beat the resistance it may face on the way.
- The $0.56 region could be a good entry should ADA drop to that level.
Dan Gambardello, a crypto analyst, revealed that he has finally found a bull market door for Cardano (ADA). According to Gambardello, it was difficult to identify the door on the ADA because Bitcoin (BTC) is the only asset that offers easy access to the indicator.
A bull market door is described using the Fibonacci retracement levels. Notably, it focuses on the bear market low to a bull market high. The analyst, in the video shared, noted that BTC had notable bull market doors in past cycles where the price action went on an exponential rally after.
CARDANO Pounding On BULL MARKET Doors! (WATCH OUT!)Intro 00:00What are bull market doors? 00:20LOWER HIGH (correction) 00:35Careful of resistance/pullback in short term 3:00Step 1 of Cardano bull market doors 5:20Step 2 of bull market does 6:00New cycle uptrend for… pic.twitter.com/0JcHkUrjhW— Dan Gambardello (@cryptorecruitr) December 19, 2023
ADA to Move Early?
For ADA, Gambardello mentioned that the Fibonacci does not work for the bull market door. However, he was able to identify it for ADA using multiple indicators. Furthermore, the analyst noted that ADA is making an early move this time compared to previous cycles.
In past cycles, ADA’s parabolic breakout happened after the Bitcoin halving. But this season, it seems like it might occur before the event, Gambardello said. The analyst also said that the rise in ADA’s price would not be linear as it would face resistance.
One of the indicators he used was the Change of Character (ChoCh). This indicator simply signifies a structural shift in a market trend when a supply or demand zone fails to hold. He also considered ADA’s break in structure, which he said has been getting stronger.
Consequently, he mentioned that the break of structure would help break through the key resistance while initiating the continuation of ADA’s uptrend.
ADA Falls But That’s Not All
In the last 24 hours, ADA’s value has dropped by 4.69% while changing hands at $0.58. This decline made the cryptocurrency the least-performing asset out of the top 10 within the given timeframe.
For an asset whose value has increased by 52% in the last 30 days, this correction seems like a chance to buy at a discount. From the ADA/USD 4-hour chart, the 0.786 Fibonacci retracement levels showed that the token price could still pull back.
At press time, the 0.786 Fibonacci level was $0.56, indicating that ADA might still fall in this region. At the same time, $0.56 seems like a good entry for the token before it begins a full-blow uptrend.
Another indicator to check out is the Relative Strength Index (RSI). As of this writing, the RSI reading was 47.13, suggesting that buying pressure has become weak of late.
ADA/USD 4-Hour Chart (Source: TradingView)
However, there was a sign from the RSI that the buying momentum could return to a significant peak soon. Should this happen, then ADA may reclaim $0.60. Also, the possibility of hitting $0.70 or above may become more feasible in the short to mid-term.
The post Cardano’s (ADA) Bull Market Door Identified, Analyst Declares appeared first on Coin Edition.