7 November 2023
Cardano (ADA) is one of the altcoins that has seen major gains in recent days, and this has ignited chatter about how the crypto token could climb. In line with this, Dan Gambardello, the founder of Crypto Capital Venture, has some answers as he provided insight into the token’s trajectory using technical analysis.
What The Charts Are Saying About Cardano
In a video shared on YouTube, Gambardello highlighted the fact that ADA saw a weekly close above the 50-week exponential moving average (EMA), which is something he labeled as “special” and “something “huge.” This is so because there are currently similarities between now and the last cycle, which ushered in the bull market.
Interestingly, he noted that Cardano seems to be above the game this time around, as the close above the 50-week moving average occurred this time while ADA is still in the accumulation phase, unlike back in February 2020 when it happened just after the accumulation phase.
He also linked the Relative Strength Index (RSI) to these happenings as he noted that, just like the last cycle, ADA was overbought as it was preparing for an upside move. Despite the overbought similarities, he mentioned that this could be different in that ADA continues instead of a retracement as both the 20-day and 50-day exponential moving averages haven’t crossed over the 200-day EMA.
Can ADA Make A Move To $0.45?
Although the crypto founder admitted that he didn’t exactly have a target as to what price level ADA could hit, he mentioned that the daily chart was hinting at $0.45 as a possible target. However, he doesn’t believe Cardano can add that much gain to hit such height, as he predicts a “big retracement” soon enough.
As to how high he believes Cardano (ADA) can reach before the retracement, he mentioned that the crypto token could peak at $0.40 before the expected retracement, which could see ADA drop to around $0.29 and $0.30 based on the moving average structure.
Such a decline will represent about a %15 decline, but Gambardello is optimistic as he stated that such a dip usually occurs in between the end of the bear cycle and the start of the bull cycle. Meanwhile, he said that ADA could also fall to a Fibonacci support at around $0.26 and $0.28.
Despite his prediction that Cardano is going to fall soon enough based on its overbought status, Gambardello isn’t ruling the target of $0.45 out. He just believes it could take longer rather than just seeing all green candles straight up to that target.
At the time of writing, ADA is currently trading at around $0.35, up over 3% in the last 24 hours, according to data from CoinMarketCap.