Analysts Predict Possible Cardano Bull Trap Before Price Rally to $15

Cardano (ADA) has experienced cycles of significant price movements that analysts have studied over time. 

Dan Gambardello recently broke down this cyclical pattern into five key stages. These stages have repeated in past cycles and appear to be occurring once again in the current market environment.

Cardano Cycle in 5 Steps:

1. “Cardano down, fun while it lasted.”
2. “Tech does nothing, just a bull trap.”
3. “Told you. You should’ve listened.”
4. “Here we go again, another bull trap.”
5. “All-time highs shattered!”

Same story, different cycle.

We’re at Step #3. pic.twitter.com/Y8GTEv4zXd

— Dan Gambardello (@cryptorecruitr) September 11, 2024

Cardano’s Historical Declines and Bull Traps

In past cycles, Cardano saw substantial declines, with a notable 98% drop from its 2018 peak. Despite this, analysts identified a rounded bottom formation, hinting at the potential for a future recovery.

In the current cycle, after reaching a recent peak in 2021, Cardano has undergone a similar correction, losing around 92% of its value in early 2023. The early part of the cycle mirrors previous trends, where the token experiences a sharp decline followed by temporary market rallies, often considered bull traps.

Notably, the pattern observed in previous cycles shows that early surges are often viewed as unsustainable, resulting in further downward pressure. Gambardello’s chart analysis points out that this behavior could repeat in the present cycle, where short-term rallies are seen as bull traps, with the market remaining cautious.

Price Movements and Potential Upside

Following these initial declines and traps, Cardano historically undergoes substantial growth during broader bull runs in the market. In one instance, Cardano surged by 18,000% after a period of consolidation, driven primarily by the post-2020 Bitcoin halving.

The analyst’s current outlook hints at the possibility of a similar pattern repeating, with Cardano potentially entering another bull trap stage before seeing further price growth. According to Dan Gambardello’s speculative projections, Cardano could achieve a substantial rise if this cycle plays out as expected.

A projection of ADA reaching $15 would push its market cap to $500 billion, while a more bullish scenario could see the token reaching $31, translating to a $1 trillion market cap. Notably, during this press, ADA was trading at $0.3592, with a market cap of $12.8 billion.

Bearish Outlook and Price Consolidation

However, not all analysts share this optimistic view. Per a previous report, Lingrid, a chartist, points to ADA’s recent price consolidation below key resistance as a sign of weakness.

The token currently trades within a narrow range between $0.30 and $0.36, with the formation of a doji candle on the daily chart suggesting market indecision. Lingrid warns that if ADA does not hold above $0.325, it risks a further decline toward the $0.30 range.