Potential for Cardano to Achieve a 10X Price Rally: An Analyst’s Perspective

Cryptonews John Brightwater September 7, 2024

Potential for Cardano to Achieve a 10X Price Rally: An Analyst’s Perspective

The price of Cardano (ADA) is showing the potential for a significant rally towards unprecedented heights, as a leading cryptocurrency analyst has identified a remarkably bullish divergence in the ADA/BTC price chart. This particular technical indication has generated optimism regarding a possible 10-fold increase in Cardano’s price.

Dan Gambardello, a notable figure in the cryptocurrency analysis community, has articulated his positive outlook regarding the future price trajectory of ADA, the native token of the Cardano blockchain. His analysis of the ADA/BTC price chart revealed a bullish divergence pattern, indicating that a rebound in ADA’s price could be on the horizon.

A bullish divergence materializes when a cryptocurrency’s price forms new lows while the Relative Strength Index (RSI) fails to do so. This phenomenon typically suggests that the prevailing bearish momentum is diminishing, potentially marking the beginning of a bullish reversal and subsequent uptrend.

Gambardello’s assessment of the ADA/BTC chart tracks the price of Cardano in relation to Bitcoin over an extended period, highlighting that a similar bullish divergence pattern was observed approximately four years prior. During that period, Cardano experienced a dramatic price surge exceeding 1,000% against Bitcoin, culminating in an all-time high of $3.10 in September 2021. In light of this historical trend, Gambardello posits that the current bullish divergence in the ADA/BTC pair could herald a similar price increase.

If this trend holds true, ADA’s value could soar by an astonishing 10 times, potentially elevating its price from the current level of $0.319 to over $3 in this bullish cycle.

In a related discussion, the DApp Analyst, an account dedicated to market analysis and promotion of decentralized finance (DeFi) projects within the Cardano ecosystem, expressed similar expectations on September 5. This analyst’s projections indicate that the price of ADA may rise dramatically, potentially achieving an 860% increase to revisit all-time highs surpassing the $3 mark. The DApp Analyst anticipates that by the first quarter of 2025, the Federal Reserve may adopt a more accommodating monetary stance, characterized by lower interest rates and a higher money supply.

Moreover, this analyst accentuated the evolution of Cardano into a more reliable investment, moving away from its former reputation as a speculative asset. Observations suggest a correlation between declining yields on one-year U.S. Treasury bonds and appreciating ADA prices. Historically, a reduction in bond yields has been associated with substantial gains in Cardano’s value, often outpacing Bitcoin.

In accordance with these historical patterns, the DApp Analyst forecasts that 2025 may usher in a new altcoin season, signifying a period during which cryptocurrencies, including ADA, might experience notable price increases and robust growth.