Cardano (ADA) is following a pattern similar to its previous bull market, according to crypto analyst Dan Gambardello.
He said the recent drop after quantitative tightening (QT) is the kind of pullback he has been waiting for. He advised investors to look at the bigger picture rather than focusing on short-term price moves.
Gambardello believes the long-term charts for Cardano, XRP, and Ethereum look positive.
At the time of writing, ADA was around $0.254, down 1.5% in 24 hours. Bitcoin also fell from $84,280 to $82,227, putting pressure on other cryptocurrencies. Notably, ADA traded at $0.2824 this week but has since fallen 10.68% from that level.
Gambardello Sees a Post-QT Cardano Setup
Gambardello’s main argument centers on the relationship between monetary conditions, the business cycle and Cardano’s historical price behavior.
He pointed to the end of quantitative tightening and compared the current environment with the period following the end of QT in the previous cycle.
According to the analyst, Cardano experienced a similar “post-quantitative tightening dip” before eventually moving higher as the broader business cycle shifted from contraction toward expansion.
He highlighted the 20-week and 50-week moving averages on the ADA chart, saying Cardano is currently positioned between the two averages.
“We are in this moment post-quantitative tightening dip between the 20 and the 50,” Gambardello said.
For him, the next development to watch is the 20-week moving average moving above the 50-week average. He described that crossover as part of the setup he expects to see across altcoins if the market continues moving into a new cycle.
Analyst Compares ADA With Its Previous Cycle
Gambardello also compared Cardano’s current price pattern with what happened in early 2020. He said the two periods look similar because the economy was moving toward growth and ADA was around its 50-week moving average.
However, there is an important difference. In early 2020, the COVID-19 crash hit the crypto market and drove prices down sharply. Gambardello called it a “black swan” event.
He said he is not predicting another major crash. He only noted that similarities between the current market and early 2020 caught his attention. Gambardello also mentioned an event being discussed on social media but said he did not want to speculate about it.
XRP Shows a Similar Pattern
Gambardello also sees a similar setup in XRP. He said XRP is going through a post-QT dip while the economy appears to be moving toward growth.
He also noted that XRP faces a different situation than it did during the previous bull cycle. In December 2020, the SEC sued Ripple, claiming that XRP sales were unregistered securities offerings. The lawsuit created pressure on XRP during the crypto bull market.
Gambardello believes XRP did not experience a normal bull cycle because of the lawsuit. Today, he says the situation is different because Ripple and XRP’s regulatory environment has changed.
For Cardano, his main focus remains the 20-week and 50-week moving averages and whether the 20-week average eventually moves above the 50-week average.
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