Cardano (ADA) has been gaining attention from analysts and investors, with some projecting a price target of $10. As the cryptocurrency market recovers, ADA is showing renewed bullish momentum. Currently trading at $0.7130, the digital asset has seen a slight increase of 0.33% in the last 24 hours, according to CoinMarketCap. While some skeptics dismiss the $10 target as overly ambitious, crypto analyst Dan Gambardello remains confident in ADA’s long-term potential, attributing its strength to solid fundamentals and the growing role of Bitcoin DeFi.

Gambardello’s Bullish Outlook

Dan Gambardello, a prominent crypto analyst, has been vocal about his belief in Cardano’s future. He points to several factors that could drive ADA to new heights. According to Gambardello, ADA’s decentralization, scalability, and security are fundamental strengths that differentiate it from other cryptocurrencies. Additionally, he emphasizes the growing significance of Bitcoin DeFi and multichain advancements, which could unlock a potential $2 trillion opportunity for Cardano.

One of the key factors Gambardello highlights is the potential shift in U.S. Federal Reserve policy. He predicts that the transition from Quantitative Tightening (QT) to Quantitative Easing (QE) could inject significant liquidity into the market, acting as a bullish catalyst for ADA. The influx of liquidity could fuel growth in Cardano’s value, helping it reach new milestones.

ADA’s Inclusion in the Digital Asset Stockpile

Another strong indicator of Cardano’s future potential, according to Gambardello, is its inclusion in the Digital Asset Stockpile. He views this as a key factor in the cryptocurrency’s long-term growth trajectory. With increased institutional interest and growing recognition, Gambardello believes that ADA could see substantial upward movement, potentially reaching the much-discussed $10 mark.

While Gambardello acknowledges the skepticism surrounding such a price target, he is steadfast in his conviction that Cardano’s fundamentals make it a strong candidate for such growth. He stated, “A $10, $350 billion market cap sounds crazy to a lot of people, but I will not ignore it just because it sounds crazy.”

Drawing Parallels with Ethereum’s Growth

Gambardello draws parallels between Cardano’s growth potential and Ethereum’s past performance, particularly during its previous bull cycle. He notes that Cardano has already demonstrated impressive growth, rising from $0.30 to an all-time high of $3.09 in 2021, even without smart contract functionality or government recognition. He believes that if Cardano continues on its current trajectory, a climb to $10, representing a 1,300% increase, is achievable.

However, Gambardello acknowledges that the journey may not be straightforward. He mentions the possibility of volatility and retracements in the short term, particularly as the market approaches April. He cautions that while Cardano’s recent buy signal and increasing market activity suggest potential for a short-term rebound, there are still underlying market factors, such as the negative Funding Rate and high MVRV ratio, that may hinder a sustained rally.

Conclusion

While Gambardello remains optimistic about Cardano’s long-term potential, caution is necessary in the short term. ADA’s solid fundamentals, growing role in DeFi, and inclusion in the Digital Asset Stockpile are all factors that could propel its price toward the $10 mark. However, traders and investors should be mindful of market volatility in the coming weeks. Although ADA may experience temporary surges, a lasting bull run may not materialize just yet. Investors should remain cautious, watching how the market evolves over the next few months.