Cardano (ADA) has been under significant pressure in recent months, struggling to maintain key price levels. With concerns over a potential bear market mounting, many investors are on edge. However, one analyst remains optimistic, believing that Cardano is setting up for a major breakout and is entering a new price era. Market analyst Dan Gambardello has offered a bullish perspective, suggesting that ADA’s recent price retracement is simply part of a broader cycle that will ultimately lead to an uptrend.

Cardano’s Price Struggles and Market Sentiment

Since dropping below $1 in late January, Cardano’s price has continued to slide, recently dipping below $0.70. This price movement has raised concerns that the bull market for ADA may be over. Some analysts believe the market is entering a bearish phase, while others, like Gambardello, argue that the current price action is just a normal part of the cycle and may not signal the end of the bull run.

At the start of his analysis, Gambardello acknowledged the bearish sentiment in the market, noting that many traders believe we are entering a bear market. However, he reassured investors that such beliefs are not unfounded, but they should not overshadow the potential for future gains. Gambardello pointed out that there are two distinct perspectives: those who see the market retracement as the start of a bear market and those who view it as a typical cyclical retracement before a new rally.

Technicals Show Positive Signs for Cardano

To back up his bullish outlook, Gambardello examined Cardano’s technical indicators. He highlighted the Relative Strength Index (RSI), which is showing signs of a healthy retracement similar to patterns seen during the 2020/2021 bull market. According to Gambardello, the monthly RSI for ADA is currently pulling back toward its moving average, a setup that historically signals the start of a new bull phase.

Gambardello also pointed to ADA’s consolidation around the 20-week moving average, a level where the cryptocurrency has previously shown signs of a major rally. He compared this current consolidation phase to the 2020/2021 cycle, where ADA consolidated before its price surged upward.

Another key technical factor Gambardello mentioned is the inverse head and shoulders pattern that is forming on the weekly chart. This pattern, which consists of a left shoulder, a head, and a right shoulder, is often seen as a bullish reversal signal. Gambardello pointed out that similar patterns in previous cycles have led to massive price breakouts for ADA.

Support Levels and the Path Forward

As ADA continues to trade around $0.68, Gambardello stressed the importance of the cryptocurrency holding certain support levels. He emphasized that if Cardano can consolidate between the 50-week and 20-week moving averages, it could trigger a rally similar to those seen in past cycles. Gambardello also pointed to a key price level around $0.70, where ADA has struggled to maintain support in previous cycles.

If ADA can flip this level into support and close above $0.70 by the end of February, it could signal the beginning of a new bullish phase. Gambardello also mentioned that closing February above the $0.70 to $0.71 region and creating higher lows would be a strong signal that ADA is entering a new era.

Institutional Interest and Cardano’s Growing Ecosystem

Gambardello’s optimism is also fueled by recent developments in the Cardano ecosystem. He pointed to the U.S. Securities and Exchange Commission (SEC) recently acknowledging Grayscale’s application for a Cardano-based exchange-traded fund (ETF), which could bring significant institutional interest to ADA.

The growing interest from institutional investors is evident, with whales continuing to accumulate ADA despite its recent price dip. Gambardello himself has added more ADA to his portfolio, reinforcing his long-term bullish stance on the cryptocurrency. He believes that the current market fear presents an excellent opportunity for long-term investors to buy ADA at a discounted price.

Looking Ahead: ADA’s Potential Price Targets

Despite the short-term challenges ADA faces, Gambardello remains confident about its long-term potential. He set ambitious price targets for Cardano, predicting that ADA could reach $7, $10, and even $14.20 in the future. However, he acknowledged that the bulls must first reclaim the $0.70 level before February ends in order to flip market sentiment and regain upward momentum.

With ADA currently trading at $0.6885, down 7.4% over the past 24 hours, the next few days will be critical for Cardano. If the cryptocurrency can hold its support levels and close above key price points, Gambardello’s predictions for a new bullish era for Cardano could soon become a reality.

Conclusion: A New Era for Cardano

While Cardano’s recent price struggles may have left some investors feeling uncertain, Gambardello’s analysis offers hope for those looking for long-term growth. With strong technical indicators, increasing institutional interest, and a growing ecosystem, Cardano could be poised for a major price breakout. If ADA can reclaim important support levels and close the month on a positive note, it could mark the start of a new era for the cryptocurrency, setting the stage for impressive gains in the coming months.