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Cardano has been in the spotlight lately, not only because its price has increased slightly, but also because of the predicted increase. According to forecasts, the ADA could rise and reach by 16% to $0.37 in October 2024. But what really attracted interest was Cardano analyst Dan Gambardello’s bold statement that ADA could gain as much as 1,000% against Bitcoin.
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Gambardello’s prediction is based on a setup very similar to the bullish divergence in 2020, which indeed led to a strong price increase. Despite this optimism, overall market sentiment for Cardano remains conservative.
While price gains since then have not been enough to offset the 9% losses suffered by investors this week, this may be a limited indication of increasing momentum for the currency. ADA just posted a modest price gain of 2.5% to $0.3263.
Bullish case of analysts
Gambardello is bullish based on the ADA/BTC technical chart. He pointed to A bullish divergence where the price of ADA continues to make lower lows while the RSI and MACD make higher lows – a sign that the downside momentum could be weakening and a reversal could occur very soon. Anyone who has followed crypto price movements knows that this has been the precursor to many major rallies.
🚨 Insane bullish divergence on ADA/BTC daily chart.
The last time this happened four years ago, Cardano rallied over 1,000% against Bitcoin. pic.twitter.com/cR0uqkIcTe
— Dan Gambardello (@cryptorecruiter) September 5, 2024
And he’s also quite candid about his bold prediction. In a recent If history repeats itself, we may see another “insane” price increase for ADA.
Market sentiment: bearish or bullish?
It’s not all moon-bound for Cardano, though. If Gambardello’s rosy projection was anything to go by, the opposite could be said by the broader market. The market sentiment right now is without a doubt bearish.
The Fear & Greed Index, one of the most important barometers of investor confidence, is at 22, indicating ‘extreme fear’. This essentially means that most investors are still very skeptical about a big move in ADA and risk appetite remains very low.
Over the past thirty days, ADA has experienced relatively moderate turbulence; only 53% of the days are in the green. The price action hasn’t really been consistent, and this kind of downside volatility might as well turn off many potential investors looking for more sustainable price momentum.
Although the forecast for an increase by October 2024 is 16.24%, the current environment will not exactly inspire much confidence. It would be somewhat reasonable to exercise caution given the temperamental nature currently ruling the markets.
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ADA Price Prediction
That leaves investors with a difficult question. On the one hand, the technical data presented by Gambardello shows a possible breakout. Conversely, the state of the market is somewhat erratic, and overall the mood is simply not optimistic. Perhaps investors should wait for more compelling evidence of ADA’s next move and proceed cautiously for now.
The coming weeks will be crucial for Cardano. And while Gambardello’s prediction succeeded in raising hopes, the overall market still appears to be suppressing any immediate bullish momentum. For now, caution may be the best approach, but once ADA starts to move out of its reach, things could change quite quickly.
Featured image from Medium, chart from TradingView
