Renowned crypto analyst and trader, Dan Gambardello, has expressed his optimistic outlook for Cardano (ADA) in a series of tweets.
Gambardello’s technical analysis indicates the potential for ADA’s price to break above a crucial resistance channel, ranging between $0.32 and $0.35.
Considering the recent impact of SEC lawsuits against major crypto exchanges, Binance and Coinbase, ADA has ground to cover.
Gambardello highlights that ADA presents more potential for recovery compared to Bitcoin (BTC) and Ethereum (ETH), positioning itself as a strong contender in the Ethereum-killer narrative.
Gambardello notes that ADA is currently trading above the 20-day moving average (MA) line, a positive sign since the altcoin faced multiple rejections from this technical indicator in recent weeks.
Additionally, the daily Relative Strength Index (RSI) has moved out of extreme oversold territory, signaling further positive prospects.
If ADA receives significant buying pressure in the upcoming week, Gambardello predicts the price may target $0.32, which represents a major resistance level. Breaking through this level could serve as a strong bullish confirmation for ADA.
Conversely, if ADA’s price drops below the 20-day MA line, the downside target could be around $0.22, according to the analyst. Regardless, Gambardello suggests that ADA is likely to make an 8%-9% move in either direction.
Traders and investors should closely monitor ADA’s position relative to the 20-day MA line in the coming days, as it may offer early indications of its short-term price movement.
A break below the 20-day MA could lead to a decline towards $0.22, while continued support from the line could push ADA towards $0.32.