Cryptocurrency analyst Dan Gambardello has identified a potentially imminent surge to $2 for Cardano price, based on historical cycle analysis and current market momentum.
His prediction, which began with an October forecast when ADA traded at $0.35, has already proven accurate with the token’s rise above $1, though the speed of the current rally introduces new considerations for short-term price action.
Historical Patterns Signal $2 Target Ahead for Cardano Price
Gambardello’s analysis draws parallels between Cardano’s current market behavior and its previous bull cycle, particularly focusing on the relationship with Bitcoin’s halving events.
The analyst points to his October 11th prediction, made when Cardano price traded at $0.35, which accurately forecasted the token’s return to dollar-plus territory based on historical fractal patterns.
The foundation of this analysis rests on the cyclical nature of cryptocurrency markets, specifically the correlation between Bitcoin halving events and subsequent altcoin seasons.
Gambardello demonstrates this through overlay analysis of previous market cycles, showing how altcoin performance typically follows a predictable pattern after Bitcoin’s halving events.
– Advertisement –
This historical precedent suggests Cardano is currently positioned similarly to its 2021 setup, just before its major price acceleration.
Particularly noteworthy is the technical structure of Cardano price’s current movement, which mirrors the previous cycle’s breakout pattern but with significantly increased velocity.
The analyst identifies key “bull market doors” – technical resistance levels that, once broken, historically preceded substantial price appreciation.
These levels, derived from previous swing highs and lower high formations, serve as crucial technical markers for potential price expansion.
Gambardello notes that once Cardano price breaks decisively above its current resistance, the move to $2 could happen “in a matter of weeks,” similar to how the token rapidly advanced after breaking the $1 level in previous cycles.
Velocity of Current Rally Raises Caution
The speed of the current rally of Cardano price has caught even experienced analysts by surprise. According to Gambardello, the current movement from breakout to bull market resistance took just 31 days, compared to approximately 80 days during the 2021 cycle.
This accelerated timeline suggests a fundamental shift in market dynamics, potentially driven by institutional investors and whales attempting to position themselves ahead of the anticipated altcoin season.
The rapid ascent is particularly evident in the behavior of key moving averages. The 20-day, 50-day, and 200-day moving averages, which previously showed extended periods of consolidation, have experienced an unusually quick separation.
This technical phenomenon typically indicates strong momentum but can also signal potential overextension in the short term.
Of particular concern is the current state of momentum indicators on the daily timeframe. Unlike the 2021 cycle, where overbought conditions were regularly followed by healthy cooling periods, the current rally has maintained consistently overbought readings without significant retracement.
The previous cycle demonstrated a more sustainable pattern of alternating between overbought conditions and cooling phases, which allowed for more stable price advancement.
Consolidation Expected Before Next Move
While maintaining a strongly bullish macro outlook, Gambardello suggests a one to two-week consolidation phase may be necessary before Cardano price’s next major advance.
The analyst identifies a potential consolidation range between the 20-day and 50-day moving averages, with additional support around the mid-70s level for extra security.
Despite near-term caution, the path to $2 remains clearly defined. Gambardello emphasizes that once consolidation completes, the move to $2 could happen rapidly, potentially “in a matter of a couple of weeks.”
The analyst maintains that such consolidation would be healthy for sustained upward momentum.