Cardano (ADA) could be on the brink of a substantial price rally, potentially reaching new highs. A well-respected crypto analyst has identified an “insane bullish divergence” in the ADA/BTC price chart, sparking expectations of a potential 10-fold increase in ADA’s price.
Why Cardano Price Could Surge 10X
Dan Gambardello, a popular crypto analyst, has shared his optimistic projections for ADA, the native token of the Cardano ecosystem. By analyzing the ADA/BTC price chart, Gambardello uncovered a bullish divergence pattern that could indicate an imminent price rebound for ADA.
Typically, a bullish divergence occurs when the price of a cryptocurrency, such as Cardano, makes a new low, but the Relative Strength Index (RSI) indicator does not follow suit. This scenario suggests that ADA’s bearish trend is losing momentum, potentially signaling the onset of a bullish price reversal and uptrend.
Gambardello’s ADA/BTC price chart tracks Cardano’s price relative to Bitcoin over time. His analysis reveals that a similar bullish divergence pattern occurred in the ADA/BTC chart about four years ago. At that time, Cardano experienced a massive price rally of over 1,000% against Bitcoin, which set the stage for its rise to new all-time highs of $3.10 in September 2021. Given this recurring historical pattern, Gambardello suggests that the current ADA/BTC bullish divergence might be a precursor to a similar price increase for Cardano.
If this historical trend continues, ADA’s price could surge by a whopping 10X, potentially pushing its current value of $0.319 to over $3 in this bullish cycle.
Analyst Sees ADA Revisiting All-Time High Price
The DApp Analyst, a market research and marketing account for DeFi projects within the Cardano ecosystem, shared insights on September 5 about ADA’s potential future performance. Their analysis, based on various economic factors and historical market trends, suggests that ADA could skyrocket significantly, possibly rallying 860% to revisit all-time highs above $3.
By the first quarter (Q1) of 2025, The DApp Analyst anticipates that the Federal Reserve (FED) may shift towards a looser monetary policy, characterized by lower interest rates and increased money supply. This economic shift could provide a favorable environment for ADA’s price growth.
Additionally, the analyst believes that Cardano has evolved into a more credible investment, shedding its prior perception as a speculative asset. They highlighted a connection between declining United States (US) 1-year Treasury bond yields and rising ADA prices. Historically, as bond yields dropped, Cardano’s value surged significantly, even outperforming Bitcoin.
Following this historical trend, the analyst suggests that 2025 may usher in the altcoin season, with cryptocurrencies like ADA experiencing significant price increases and growth.
Overall, the future looks promising for Cardano (ADA), with potential bullish trends and favorable economic conditions possibly paving the way for substantial price increases.
