Analyst Dan Gambardello is watching Cardano closely as it approaches a critical point that could lead to a large move in the coming days. In a recent video on YouTube, he explained that ADA is currently very close to an important resistance level.
It could either drop and retest support lower, or it could break out sharply from this range.
Analyst Examines ADA’s Risk Level
The analyst, who uses technical analysis and a risk model to assess cryptocurrencies, stated that ADA’s current risk level is low, coming in at 31, just like it was before the last bull run.
He explained that he is currently seeing strong support in ADA at $0.50 – $0.60 and resistance at $0.80. If ADA manages to break through this resistance, then its price could go up to $1.25, which would start an even bigger rally.
“They’ll be watching Jerome Powell’s speech this week for any bullish cues that could continue to propel the market higher. Any negative commentary from Powell or a broad market selloff could put pressure on ADA to drop lower this week.
It’s also worth noting that we’re approaching the 20-week moving average on the chart. It looks like the 20-day moving average is about to cross above the 50-day moving average, which is a bullish technical indicator.
However, it remains to be seen if ADA can manage to sustain support at this level or if it pulls back from here. We’ll also be watching the M2 money supply and the impact of the upcoming end of quantitative tightening.”
Gambardello added that these macro factors could influence ADA’s price movements in the short term. Any positive news could lead to higher highs for ADA in the coming days. However, a negative sentiment could lead to a short-term dip.
Finally, comparing ADA’s current price movements to its previous cycle, the analyst expects that ADA could set the stage for a similar parabolic move if it breaks through $1.25.
