Prominent crypto analyst Dan Gambardello has drawn parallels between Cardano’s current market behavior and its historical patterns.
He suggested that ADA’s prolonged sideways movement might be nearing its end. Despite Bitcoin’s approach toward all-time highs, Cardano’s apparent stagnation at 88% below its peak has raised concerns among investors.
Cardano’s Historical Patterns Signal Potential Breakout
Gambardello’s analysis focuses on comparing current market conditions to the previous cycle.
In his video analysis, he spoke about the October-November 2020 period before Cardano’s major breakout. He emphasizes that during the last cycle, Bitcoin demonstrated similar behavior.
Gambardello stated,
“Bitcoin higher highs, higher lows, approaching all-time high, Cardano down still like 88%. If you look at ADA on the weekly, it is going to shock everybody once again.”
Bitcoin OS Integration Could Be a Game-Changing Development
The analyst particularly emphasized the recent Bitcoin OS announcement. The integration was even shared by Charles Hoskinson, who described it as “probably the biggest news item Cardano has ever had.” He added,
“A 1.3 trillion dollar opportunity all accessible using BTC as gas – Bitcoiners won’t even know they’re using ADA.”
He suggested that this integration could be more important than the anticipated USDC integration.
While USDC might provide a short-term boost, the Bitcoin OS integration represents a fundamental long-term development for the Cardano ecosystem.
Looking at weekly charts, Gambardello identified several bullish indicators aligning with previous cycle patterns:
- A higher low formation on the RSI while trading below the 20-week moving average
- Consolidation patterns similar to the previous cycle
- Bull market doors indicator showing similar patterns to the 2020-2021 breakout
The analyst noted that during the last cycle, ADA was down approximately 90% before breaking above the 20-week moving average.
This breakout was followed by a month of volatile trading above this crucial level, eventually leading to significant price appreciation.
Cardano Shows Modest 2% Rise in 24 hours
Cardano (ADA) currently holds the 12th position in market capitalization. ADA was trading at $0.3554 with a 2.2% increase in the last 24 hours at press time. Despite this modest gain, the cryptocurrency has experienced a 7.5% decline over the past 30 days.
ADA was also down from its all-time high of $3.09, recorded on September 2, 2021. As per the latest data, ADA was currently down by 88.5% from that peak.
While Gambardello maintains a bullish outlook based on these technical and fundamental factors, he emphasizes the importance of preparation rather than certainty. He said,
“There’s no guarantee that this will repeat. But isn’t it a good idea to be prepared for it? We’re prepared either way.”
The analyst’s comparison between current market conditions and the previous cycle suggests that Cardano might be approaching a major turning point.
