The “worst is over” for Cardano (ADA), according to cryptocurrency trader and analyst Dan Gambardello, who made the claim in his most recent YouTube video. He was alluding to the extreme promote pressure that had been plaguing the altcoin’s charts during the previous several months. However, he did issue a warning that the altcoin will likely continue to experience some volatility and sideways trading over the coming months.
The most recent review of Gambardello was published two years after the ADA‘s $3.10 all-time high (ATH). The main factor keeping the analyst optimistic about the future of the altcoin is the fact that the Alonzo hard fork event had no bearing on ADA achieving its ATH once more in September 2021.
Moreover, throughout this bear market, the ADA DeFi ecosystem has expanded rapidly. Therefore, the analyst thinks that the project has built a solid foundation over the last few months, which could lead to a significant value increase in the months after the Bitcoin halving event in April 2024.
Gambardello also expressed his opinion that ADA’s 90+% value decline during this weak market was necessary. Additionally, he asserted that the altcoin’s value reset would be positive because it might draw new investors to the ecosystem, which might lead to greater Cardano community adoption.
Despite the analyst’s high predictions for ADA and the Cardano ecosystem, ADA’s value may continue to decline in the coming months. Meanwhile, according to CoinMarketCap, ADA printed a 24-hour acquisition of 0.18%. As a result, at the time of publication, the altcoin was trading hands at $0.2571.
Even while Gambardello emphasised a number of positive fundamental events in the Cardano ecosystem that might lead to ADA achieving a new all-time high, short-term technical indicators indicated that momentum was still favouring sellers. The 20-day EMA line was directly above the 9-day EMA line, which was particularly noteworthy.
However, the value of ADA was in trying to turn the shorter EMA line into support. If ADA is capable of closing a daily candle above the 9-day EMA line within the next 48 hours, it may accomplish the same with the 20 EMA line as well.
Once this happens, a route will be opened for the altcoin’s price to rise to $0.2920, which should lead to the two EMA traces crossing. If the 9-day EMA line crosses the 20-day EMA line, it should indicate a change in ADA’s short-term momentum in favour of bulls. However, if the 9-day EMA line rejects ADA’s value, it may retrace to the next support level at $0.2375.