The recent surge in Cardano (ADA) has sparked optimism among analysts, with many suggesting that ADA is on the brink of a bullish market surge in the near future. On the last day of February, ADA experienced a significant spike, gaining 14% and pushing its price above $0.7 for the first time since May 2022. While these gains are promising, some investors have expressed concerns about ADA potentially lagging behind Bitcoin in terms of performance during the current bull cycle.
Analysis of ADA’s Performance
Popular crypto analyst Dan Gambardello recently addressed these concerns in a video posted on X, where he highlighted that Cardano is currently following a typical trend. Gambardello mentioned the presence of a bull indicator that is expected to trigger a parabolic price spike for ADA in the near future. The analyst’s analysis aimed to alleviate worries about ADA’s underperformance in the current bull cycle, drawing parallels to a previous cycle where ADA was trading between $1.30 to $1.98 when Bitcoin reached $60,000.
Gambardello also made comparisons to Ethereum’s past performance, noting that Ethereum was one cycle ahead of Cardano in terms of price movements. He pointed out that when Bitcoin reached its former all-time high of $17,000 in the last cycle, Ethereum was trading at $500, which seemed to underperform compared to its previous cycle. Despite this, there was no cause for concern among investors as Ethereum eventually caught up when Bitcoin hit $17,000 in 2017. Gambardello suggested that ADA is currently mirroring Ethereum’s previous cycle and that the current price movement is to be expected.
Break of Structure Indicator
An important indicator pointed out by Gambardello is the break of structure on ADA’s weekly chart, which historically has led to significant price surges. Gambardello noted that the last time this indicator triggered in 2021, ADA surged from $0.15 to $1.5. While ADA experienced a minor correction after breaking above $0.7, Gambardello predicted that a more significant disruption of structure could occur within the next three days.
Since the release of Gambardello’s video, ADA has surpassed the $0.7 price level and is currently trading at $0.74, marking a 10% increase in the past 24 hours. The cryptocurrency even reached above $0.76 within the same timeframe. Additionally, the Cardano blockchain has crossed over 10 million blocks, signaling its continued growth and potential for further gains in the crypto market.
Final Thoughts
While there are concerns about ADA’s performance relative to Bitcoin and Ethereum in the current bull cycle, analysts like Dan Gambardello remain optimistic about a potential bullish market surge for Cardano in the near future. As the crypto market continues to evolve, it is important for investors to conduct their own research and make informed decisions before investing in any digital assets.