Key Insights:
- Dan Gambardello sees a bullish Cardano price consolidation pattern similar to the last cycle.
- Fed rate cut decision expected to trigger major volatility this week.
- ADA price struggles at $1 level, but an expert targets $1.50 on a breakout.
Cardano price faces major volatility ahead of the Federal Reserve’s anticipated rate cut decision this week.
Analyst Dan Gambardello identifies bullish consolidation patterns similar to previous cycles, targeting $1.50 for ADA price.
Analyst Identifies Bullish Cardano Price Consolidation Pattern
Dan Gambardello has shared a bullish consolidation pattern in the weekly chart for Cardano price, resembling previous cycle behavior.
The analyst noted frustrating price action that is similar to that of historical patterns before major breakouts. Current RSI shows higher highs and higher lows, while MACD compression shows potential energy building.
Gambardello compared ADA’s current movement to previous cycle consolidation phases.
The weekly pattern shows months of sideways movement below the 20-week moving average. RSI momentum oscillators show similar trending behavior with attempts to break higher.
The analyst described the current price structure as “not bad” despite appearing stagnant. Cardano price shows signs of wanting to trend upward but faces resistance at key levels.
Meanwhile, technical indicators support the bullish thesis through momentum oscillator behavior. The RSI shows gradual improvement with higher lows forming over recent weeks.
MACD compression suggests potential energy building for the next directional move. Gambardello emphasized that this consolidation pattern often surprises market participants in bull environments.
Cardano Price Eyes $1.50 Target Despite Current Struggles
Cardano price traded around $0.87 with 6% gains over the past two weeks. Notably, ADA price faces continued resistance at the $1 level that has proven difficult to breach.
Gambardello shared specific technical targets based on the daily chart wedge pattern. Downside targets point to $0.64 if the consolidation breaks lower.
However, the upside targets range from $1.05 to $1.06 at the upper trend line resistance.
The major breakout target reaches $1.50 if ADA can escape the current consolidation pattern.
This level is the measured move from the ascending wedge formation. The analyst noted this target “might be hard to believe, but when the move happens, it could happen quickly.”
Gambardello mentioned that the current wedge shows higher highs and higher lows characteristic of bullish consolidation phases.
Market conditions will decide which target level gets tested first during the volatile week ahead. Gambardello stressed being “ready for all scenarios,” given the uncertain macro environment.
The Fed decision could provide the catalyst needed to break Cardano price from its current trading range toward either extreme target.
Fed Decision Creates Market Uncertainty
The Federal Reserve faces its rate cut decision on September 17, with markets pricing in specific outcomes.
Current futures show 94.2% probability of a 25 basis point cut and 5.8% chance of 50 basis points. The decision timing creates heightened volatility expectations across crypto markets.
Analyst Ted outlined two potential Bitcoin scenarios following the Fed announcement. Scenario one projects Bitcoin dumping toward $104,000 before reversing to new highs.
Scenario two targets $92,000, which includes a CME gap fill before potential recovery.
The rate cut announcement could cause initial selling pressure across risk assets like Cardano price. Notably, the crypto market often experiences sharp moves around major Federal Reserve policy decisions.
However, a dovish tone suggesting multiple future cuts could cause sustained crypto rallies. Markets will parse Fed commentary for inflation concerns and future policy guidance.
The timing creates a setup for major price movements in either direction this week. Gambardello noted these weeks “tend to be very volatile either way” around major announcements.