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Current Price Dip is the Most Bullish Thing That Could Happen to Cardano: Analyst

Published 28/01/2024, 12:13
Current Price Dip is the Most Bullish Thing That Could Happen to Cardano: Analyst
ADA/USD
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  • According to Dan Gambardello, the current price dip is the most bullish thing that could happen to Cardano.
  • Gambardello showed that ADA had repeated its move in 2020 after the Bitcoin halving.
  • The analyst showed that ADA’s current situation suggests a brief rally into the 50-day moving average region.

According to Dan Gambardello, founder of Crypto Capital Venture, the current price dip is the most bullish thing that could happen to Cardano and the crypto market. Gambardello used the ADA/USD weekly chart from TradingView to show how the cryptocurrency is forming a familiar bullish pattern.

In a recently uploaded video, Gambardello showed that ADA had repeated its move in 2020 after the Bitcoin halving. He revealed how ADA established a swing high, retraced into a bottom before embarking on an extended rally. According to the analyst, that breakout by ADA coincided with Bitcoin breaking its bull market doors.

Gambardello noted that he is anticipating the break of structure seen in 2020 to activate. He showed that ADA/USD started a downward retracement, mimicking the move during the last cycle. He scaled down to the ADA/USD daily chart and showed that the bullish structure is still developing.

Meanwhile, the renowned analyst used historical data to show how ADA’s current situation suggests a brief rally into the 50-day moving average region. He expects the resistance to hold and ADA to drop, especially as the 50-day moving average has crossed above the 20-day moving average on the daily chart.

Although Cardano’s price structure mimics its 2020 pre-bull run pattern, Gambardello noted that it is happening earlier, according to the scheme of events. Cardano’s breakout pattern in 2020 happened after the Bitcoin halving event. This time, there are still a few months before the next Bitcoin halving, but the bullish signal is almost complete.

The crypto analyst noted that an immediate Bitcoin rally above the current swing high could trigger an early rally for Cardano. He thinks that if Bitcoin continues to rally from its current price, it could drag the rest of the crypto market with it. Hence, the expected short-term Cardano rally could become a more established bullish trend, with a break above the 50-day moving average.

The post Current Price Dip is the Most Bullish Thing That Could Happen to Cardano: Analyst appeared first on Coin Edition.

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