- Cardano is showing strong bullish signals reminiscent of its explosive 2020 rally, with key technical indicators like the MACD and risk models aligning for a potential breakout.
- If ADA breaks above the critical 200-day moving average, it could soon target the $1 mark and beyond, despite minor short-term corrections.
2020 All Over Again? Bullish Technical Signals Spark Excitement
Crypto analyst Dan Gambardello has sent a wave of optimism through the Cardano (ADA) community, pointing to striking similarities between the current market setup and the lead-up to ADA’s legendary 2020 rally. According to Gambardello, ADA’s monthly chart is flashing familiar bullish signals, most notably a potential green shift in the Moving Average Convergence Divergence (MACD) histogram—a technical indicator that marked the start of ADA’s surge from $0.11 to over $1 in late 2020.
Gambardello, the founder of Crypto Capital Venture, believes this early MACD movement could be the precursor to another massive bull run, though he cautions that short-term market fluctuations are still possible. “History doesn’t repeat exactly, but it does often rhyme,” he remarked.
Cardano Risk Model Echoes 2020’s Bull Phase
Adding weight to the forecast, Crypto Capital Venture’s proprietary Cardano Risk Model now reads 42—precisely the same level recorded in November 2020 before ADA exploded in price. Gambardello interprets this as a signal of a low-risk, high-reward environment, much like the one that preceded ADA’s historic breakout. He argues that current macro conditions, such as potential shifts in interest rates, further resemble those of late 2020.
Key Resistance Looms: Will ADA Break Through?
From a short-term perspective, Cardano has recently formed an inverse head and shoulders pattern, suggesting bullish momentum. After rebounding from the neckline at the 20-day moving average, ADA is now testing a critical resistance at the 200-day moving average.
If ADA successfully breaks above this level, Gambardello targets $1 as the next milestone—both a psychological barrier and a technical benchmark. Beyond that, he highlights the $1.20–$1.25 zone as the “bull market door,” a region of historical resistance.
Despite the RSI nearing overbought territory at 64.76, Gambardello believes minor pullbacks won’t derail the upward trend. “The setup is there. The market just needs the push,” he concluded.
With technical patterns aligning and sentiment heating up, all eyes are on ADA as it wrestles with key resistance and teases a potential breakout reminiscent of its 2020 glory days.
