Cardano (ADA) Price Prediction: ADA/BTC Analyst Dan Gambardello Predicts a Potential 1,000% Rally, Citing a Bullish Divergence Similar to 2020's Surge

Today, Cardano has posted an over 2.5% price increase after failing to break out of the $0.30 price channel following the network's incorporation of the much-anticipated Chang hard fork.

Cardano (ADA) has seen a slight uptick in price following the integration of the Chang hard fork, but investors who purchased ADA a week ago are still facing losses. However, pro-ADA analyst Dan Gambardello predicts a potential 1,000% rally for ADA against Bitcoin (BTC), citing a bullish divergence.

Gambardello analyzed ADA’s historical price action against BTC and identified a bullish divergence in the ADA/BTC trading pair. This pattern has historically signaled a major price reversal, and Gambardello believes it could lead to another strong breakout for ADA.

Specifically, he noted that the formation is similar to one that occurred in 2020, just before ADA’s 1,000% surge against BTC. Taking to Twitter to share his findings, Gambardello highlighted the striking resemblance between the two periods.

A bullish divergence occurs when a cryptocurrency’s price is making lower lows while the relative strength index (RSI) or moving average convergence divergence (MACD) indicator is making higher lows. This divergence in price and indicators suggests that downward momentum is withering and that a reversal to the upside may be imminent.

The ADA/BTC chart shared by Gambardello showcases a bottom price where the price of ADA relative to BTC remains in a downward trend. However, both the RSI and MACD show rising momentum.

According to Gambardello’s chart, this setup mirrors a technical pattern that occurred in 2020. Back then, despite a declining price, ADA’s growing RSI signaled a shift in underlying market strength, which led to a meteoric rise shortly after. The breakout that followed brought ADA to an all-time high.

Now, the Cardano analyst draws parallels between the current and past market conditions, suggesting that ADA could again stage a massive breakout.

At press time, ADA/BTC is valued at 0.00000573 BTC. If it repeats history and rallies 1,000%, the price will multiply by 11X to reach 0.00006303 BTC. Factoring in a similar percentage growth on ADA’s dollar value would put the asset at $3.553, just above its 2021 all-time high.

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