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Dan Gambardello, a well-known crypto analyst, recently highlighted what could be a significant technical indicator for Cardano (ADA). On the ADA to BTC daily chart, he points out that a "bullish" divergence is forming, which could mean Cardano's price will surge relative to Bitcoin.
When the price of Cardano is falling but its Relative Strength Index (RSI), which is a key momentum indicator, is on the rise, the divergence becomes significant. Gambardello points to a similar pattern that emerged four years ago, which led to a 1,000% rally of Cardano against Bitcoin.
Gamza KhanzadaevIn dollar terms, the price of ADA soared by the same 1,000%. If history repeats itself, Cardano could shoot up from its current price of $0.326 to $3.30, which would make it worth about $117.4 billion. That would put Cardano in the top ranks of the world's leading cryptocurrencies by market cap.
But while it is not impossible to imagine such a huge gain, given how unpredictable cryptocurrency markets can be, we also need to think about the challenges that lie ahead.
How is this possible?
A market cap of $117.4 billion would put Cardano in the top 100 companies in the world. It would be a huge achievement, but it is a long way off in the short term.
The key to hitting this 1,000% growth target is not just about the technical charts. It is about Cardano's ability to grow its user base, enhance its utility and secure wider adoption in the competitive blockchain ecosystem.
If it can hold its ground against Solana and other big rivals in these areas, it could be the start of a major price surge. But as we all know, in the world of crypto, anything can happen.
Will Cardano's technical indicators help it repeat its 2021 performance? Only time will tell if history is destined to repeat itself.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team