Analyst Describes How ADA Can Realistically Hit This Target

A prominent Cardano permabull has shared how he believes ADA could realistically reach the two-digit price goal.

Dan Gambardello, a well-known crypto analyst, recently laid out his vision for Cardano (ADA) reaching the $10 mark. He believes this target is achievable based on historical price patterns, market cycles, and the ongoing growth within the Cardano ecosystem. 

Cardano Historical Performance and Market Cycles

In his latest video analysis, Gambardello stressed that Cardano has demonstrated strong growth in previous bull cycles. The analyst noted that for instance, in the last market cycle, ADA surged from a $4 billion–$5 billion market cap to over $100 billion.

Historical market data confirms this disclosure. Particularly, Cardano had a market cap of $1.22 billion at the start of March 2020. Interestingly, this figure surged to $101.17 billion by September 2021, coinciding with ADA’s all-time high price. This marked an 8,236% rise in valuation within 19 months.

Notably, Gambardello emphasized that many investors doubted Cardano’s ability to reach that valuation, but it ultimately did. He sees a similar setup forming in the current market cycle, with Cardano positioned for another major rally.

According to his analysis, the current market structure is similar to previous consolidation phases before explosive growth. 

For context, ADA is down about 40% from its recent high, and Gambardello sees this as a normal retracement within an overall bullish trajectory. He believes investors should focus on long-term market cycles rather than short-term fluctuations.

Indicators Supporting a $10 ADA

Speaking further, Gambardello identified several chart patterns that indicate bullish potential for Cardano. One of the primary indicators is the inverse head and shoulders pattern on the weekly chart. 

Notably, Cardano appears to have begun forming this structure from early December 2023, after its drop from the $0.6 mark and subsequent recovery. When Cardano formed a similar structure last cycle, its breakout resulted in a massive upsurge. If confirmed, another breakout could lead to a major uptrend for ADA.

Gambardello also pointed to Cardano’s position relative to key moving averages. Currently trading for $0.7459, ADA is now between the 20-week MA and the 200-week MA, which has historically been a major accumulation zone before massive price surges. 

Additionally, the analyst tracks a Fibonacci retracement from the previous cycle’s swing low to its peak. This Fibonacci level aligns closely with his previously defined “bull market doors.” Notably, this confirms the idea that ADA is in a prime position for a breakout.

Cardano Ecosystem Growth and Institutional Interest

Besides the technical indicators, Gambardello highlighted fundamental factors that could drive Cardano’s long-term value. He noted that ADA is more bullish than in the last cycle. For one, the network has evolved massively since the last cycle, now featuring a thriving DeFi ecosystem, smart contracts, and increased adoption. 

Particularly, Cardano welcomed the Plomin upgrade last month, which introduced full decentralized governance. Citing these developments, Gambardello pointed out that Cardano is one of the most decentralized and secure blockchains, making it well-suited for institutional investment.

He also mentioned the recent inclusion of ADA in Bitwise’s top 10 crypto index. While this is already a bullish signal, he believes the real catalyst will be ADA’s potential inclusion in spot ETFs. Notably, Grayscale filed for a Cardano ETF earlier this month. Gambardello compared this stage of Cardano’s growth to the early days of tech stocks receiving ETF exposure.

Market Cap Projections and Realistic Price Targets

Currently, Cardano changes hands at $0.7459. It bears mentioning that for the token to reach $10, its market cap would need to hit around $350 billion. Gambardello argues this is realistic when compared to Ethereum’s performance in the previous cycle. 

Specifically, Ethereum’s market cap exceeded $500 billion at its peak, and he believes Cardano has the potential to follow a similar trajectory given its strong fundamentals.

His broader target range for this cycle is between $5 and $10, with an upper possibility of $14 if momentum accelerates. He emphasizes that this is not a baseless prediction but rather a projection based on historical patterns and current market trends.