2024-9-7 14:30 |
The price of Cardano (ADA) could be gearing up for a substantial price rally to new highs as a crypto analyst has identified an “insane bullish divergence” in the ADA/BTC price chart. This unique technical pattern has sparked expectations of a potential 10X rally in ADA’s price.
Why Cardano Price Could Surge 10XDan Gambardello, a popular crypto analyst has relayed his optimistic projections of the price of ADA, the native token of the Cardano ecosystem. While analyzing the ADA/BTC price chart, Gambardello uncovered a bullish divergence pattern which suggests that a price rebound may be imminent for ADA.
Typically, a bullish divergence occurs when the price of a cryptocurrency, in this case Cardano, makes a new low but the Relative Strength Index (RSI) indicator does not. This circumstance suggests that ADA’s bearish trend is finally losing momentum, potentially signaling the onset of a bullish price reversal and uptrend.
Gambardello’s ADA/BTC price chart tracks the price of Cardano relative to Bitcoin over time. The analysis reveals that a similar bullish divergence pattern occurred in the ADA/BTC chart about four years ago.
At the time, Cardano had experienced a massive price rally of over 1,000% against Bitcoin, setting the stage for its rise to new all time highs of $3.10 in September 2021. In light of this recurring historical pattern, Gambardello suggests that the current ADA/BTC bullish divergence might be a precursor to a similar price increase for Cardano.
The realization of this historical trend could see ADA’s price surging by a whopping 10X, potentially pushing its current value of $0.319 to over $3 this bullish cycle.
Analyst Sees ADA Revisiting All-Time High PriceThe DApp Analyst, a market research and marketing account for DeFi projects in the Cardano ecosystem, took to X on September 5 to discuss the potential future performance of ADA. The analyst based his analysis of ADA on various economic factors and historical trends in the market.
According to The DApp Analyst, the price of ADA is set to skyrocket significantly, potentially rallying 860% to revisit all-time highs above $3. By the first quarter (Q1) of 2025, they anticipate that the Federal Reserve (FED) may pivot to a looser monetary policy, possibly characterized by lower interest rates and increased money supply.
Additionally, the analyst believes that Cardano has now evolved into a more credible investment, discarding previous perceptions of being a speculative asset. They revealed a connection between dwindling United States (US) 1-year Treasury bond yields and rising ADA prices. Historically, as bond yields dropped, the value of Cardano surged significantly, even outperforming Bitcoin.
Following this historical trend, the analyst has suggested that 2025 may usher in the altcoin season, with cryptocurrencies like ADA witnessing significant price increases and growth.
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