The price of Cardano (ADA) is potentially on the brink of a significant rally to new highs, as indicated by a crypto analyst who has identified an “insane bullish divergence” in the ADA/BTC price chart. This unique technical pattern has raised expectations of a potential 10X surge in ADA’s price.
Dan Gambardello, a well-known crypto analyst, has shared his optimistic projections for the price of ADA, the native token of the Cardano ecosystem. By analyzing the ADA/BTC price chart, Gambardello has uncovered a bullish divergence pattern that suggests a price rebound may be imminent for ADA.
A bullish divergence typically occurs when the price of a cryptocurrency, in this case, Cardano, hits a new low while the Relative Strength Index (RSI) indicator does not. This scenario indicates that ADA’s bearish trend may be losing momentum, potentially signaling a bullish price reversal and uptrend.
Gambardello’s analysis of the ADA/BTC price chart shows a similar bullish divergence pattern that occurred approximately four years ago. During that time, Cardano experienced a massive price rally of over 1,000% against Bitcoin, leading to new all-time highs of $3.10 in September 2021. Based on this historical trend, Gambardello suggests that the current ADA/BTC bullish divergence could pave the way for a similar price increase for Cardano.
If this historical pattern plays out, ADA’s price could surge by 10X, potentially pushing its current value of $0.319 to over $3 during this bullish cycle.
The DApp Analyst, a market research and marketing account for DeFi projects in the Cardano ecosystem, has also weighed in on the potential future performance of ADA. They believe that ADA’s price is poised to skyrocket significantly, potentially rallying 860% to revisit all-time highs above $3. By the first quarter of 2025, they anticipate that the Federal Reserve (FED) may adopt a looser monetary policy, characterized by lower interest rates and increased money supply.
Additionally, the analyst sees Cardano as a more credible investment now, moving away from its previous speculative asset status. They have observed a correlation between declining US 1-year Treasury bond yields and rising ADA prices, with Cardano historically outperforming Bitcoin as bond yields dropped.
Drawing from this historical trend, the analyst predicts that 2025 could usher in the altcoin season, with cryptocurrencies like ADA experiencing significant price increases and growth.
In conclusion, the potential for a 10X surge in ADA’s price, driven by a bullish divergence pattern and historical trends, suggests that Cardano may be gearing up for a substantial price rally to new highs. As the crypto market continues to evolve, ADA’s performance and potential for growth remain under close scrutiny by analysts and investors alike.
