Like the rest of the crypto market, Cardano (ADA) has not been spared from the recent correction. In the past 24 hours, ADA has dropped by 10.7%, continuing its downward trend since December. However, renowned analyst Dan Gambardello sees no reason for panic. On the contrary, he predicts that Cardano is gearing up for a major surge.
Technical and Historical Patterns Indicate a Strong Setup
In a recent market update, Gambardello revealed that he has increased his ADA holdings, emphasizing that the recent price decline is not a sign of weakness but rather a natural correction within the broader bull market.
His perspective? This dip presents an attractive buying opportunity.
cardano: the best is yet to come (this chart tells all)
Intro 00:00
You are one of two people 00:20
Buying the dip and Cardano ETF news 2:00
Four ADA data points to watch now 3:55
Short term price action and support 7:30
Cardano entering a new price era 9:00 pic.twitter.com/3tV62zoEyT— Dan Gambardello (@cryptorecruitr) February 25, 2025
Key Indicator: The Relative Strength Index (RSI)
Gambardello points to Cardano’s monthly RSI, which measures whether an asset is overbought or oversold. Currently, ADA’s RSI is returning to its moving average, which he interprets as a healthy market cooldown rather than a trend reversal.
Why does this matter?
- The RSI is temporarily moving back to an average level, indicating a market reset without disrupting the long-term bullish trend.
- A similar pattern emerged during the 2020-2021 bull run, after which Cardano’s price skyrocketed.
- If the RSI rebounds following this correction, it could be a strong signal that ADA is preparing for a massive rally.
Key Price Level to Watch: $0.70
According to Gambardello, $0.70 is a critical price level for Cardano.
Current Market Status:
- ADA has dropped to $0.64, sitting just below the key support level.
- To avoid further downside pressure, Cardano must reclaim and maintain the $0.70 mark.
- Failure to do so could lead to additional selling pressure, extending the correction further.
Final Thoughts – Is ADA on the Verge of a Breakout?
- Despite the ongoing correction, analysts remain optimistic about Cardano’s long-term trajectory.
- Historical patterns suggest that ADA could be following a familiar cycle, potentially leading to explosive growth.
- The next key move? Reclaiming $0.70 to confirm strength and prevent deeper declines.
Is this the perfect buying opportunity before the next rally? If history repeats itself, Cardano could be gearing up for a major breakout.
