While Cardano (ADA) has not been a particularly favorable asset to hold in recent days, analyst Dan Gambardello has identified a potential short-term breakout for ADA.
In his latest market update, Gambardello highlighted several key indicators and upcoming developments that could drive ADA’s price higher in the coming days.
Price Target for Possible Cardano Breakout
Notably, this month, Cardano revisited a ten-month low of $0.2799, which represented over 60% loss for investors who bought ADA in March.
However, the asset has notably rebounded from this bottom, trading at $0.381 at press time. Yet, ADA is 9% below the value it traded four weeks ago.
While pessimism toward ADA has heightened based on this recent price action, bullish analysts like Gambardello continue to emphasize that the asset’s trajectories are consistent with historical trends.
In his latest analysis for holders, Gambardello noted that Cardano is showing signs of bullish momentum on its technical charts.
He noted a bullish divergence on the weekly chart, where the relative strength index (RSI) is forming a higher low while ADA’s price is making lower lows. This divergence often indicates that the downward trend is losing strength, and a reversal could be imminent. Notably, ADA has increased by 5% in the last 24 hours.
Furthermore, the analyst also pointed out that ADA is currently testing the 50-day moving average, a key resistance level. If Cardano breaks above this level, it could trigger a rally toward the $0.43 range, the analyst noted.
Gambardello emphasized the significance of ADA attaining this threshold, suggesting it could mark a significant breakout from the symmetrical triangle pattern, potentially opening the door to higher levels.
Upcoming Chang Hard Fork Could Fuel Momentum
Furthermore, Gambardello highlighted that the upcoming Chang hard fork, scheduled for August 27, could serve as a catalyst for ADA’s breakout. The upgrade introduces a new governance system, giving the Cardano community a greater role in decision-making and management of the network’s treasury.
The analyst believes this shift towards greater decentralization could enhance market sentiment around Cardano, as it positions itself as one of the most decentralized blockchains in the crypto arena.
With the combination of bullish technical indicators and the upcoming network upgrade, Gambardello is optimistic about ADA’s short-term prospects. His target of $0.43 suggests a potential uptrend that drives ADA higher by approximately 13%. Meanwhile, he stressed that the short-term outlook is uncertain.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
