With the cryptocurrency market recovering at the end of 2023, where optimism seems to be renewing investors' spirits, Cardano (ADA) has been standing out with vigorous bullish signs. The keen observations of analyst Dan Gambardello, founder of Crypto Capital Venture, suggest that the “Cardano Bulls” may have, in fact, lit the fuse for an impressive rally.
In his analysis of ADA's recent price movements, Gambardello draws attention to a series of technical and fundamental events that paint a promising picture. One of the strongest indicators of a possible uptrend, according to him, is ADA's weekly close above the 50-week exponential moving average (EMA), a feat not seen since the dawn of spring 2023.
More than just a movement on the chart, exceeding this average is seen by Gambardello as a signal of macro changes in market sentiment. It is no coincidence that Cardano has gathered solid foundations: the staking, the multi-asset ledger introduced by the Mary hard fork, and upgrades like Alonzo smart contracts bring a more robust and capable ecosystem than seen in previous cycles.
When scrutinizing the 6-hour chart, the analyst highlights a bullish divergence in the Relative Strength Index (RSI), a phenomenon where ADA exhibits a higher peak in the RSI despite a lower price, signaling momentum that dates back to the last time when the cryptocurrency beat the 50-week EMA resistance.
Even though the daily chart shows ADA as overbought, a typical prelude to a price consolidation phase, Gambardello does not rule out the possibility of us reaching a peak of 45 cents. However, he considers that a substantial pullback could precede such a level, pointing to the 20-day and 200-day EMAs and Fibonacci retracement levels as vital support areas.
At the end of his analysis, Gambardello does not fail to mention the growth of the DeFi space on Cardano and the increase in developer activity, both factors that fuel bullish sentiment in the market. His view suggests a gradual climb for ADA, with the understanding that while bulls may be in control, the path to new heights may require patience and attention to market volatilities.
