Altcoins, including Cardano, are forming a classical “W”-shaped Bollinger Band in the daily chart, suggesting an impending explosive move.
Market expert Dan Gambardello shared in his October 20 market analysis that Cardano, like most altcoins, may have bottomed. He drew this concept from a rapidly developing indicator on the ADA chart, which has historically marked the start of a parabolic expansion.
Gambardello started off the analysis by highlighting a tweet from John Bollinger, a seasoned financial analyst, which identified a “W” double bottom formation on altcoins Ethereum and Solana but not on Bitcoin. Bollinger urged keen attention on this indicator, as it could mark a significant market shift.
Nonetheless, Gambardello mentioned that Cardano needs to claim the Bollinger baseline for a sustained rally. The trendline stands at $0.75, and Cardano must rally by 11.7% from the current market price to reach the price mark.
Further fueling the expert’s bullish Cardano and altcoin stance are developments in gold and the Bitcoin dominance. He highlighted that Ethereum has a risk score of 47, suggesting there could be more room for upsides.
Moreover, Ethereum had a similar score in November 2020, when gold topped for the cycle. From there, altcoins went parabolic, with Cardano reaching its current all-time high of $3.10. He suggested that a similar event could occur as gold’s momentum slows down, sending ADA higher again.
Additionally, he mentioned the possibility of a Bitcoin dominance capsize. The 20-day moving average on the BTC.D chart recently moved above the 50-day, marking a bullish momentum shift. However, a similar occurrence in July saw the Bitcoin dominance trend slightly higher before capitulating to September low of 57.17%
Read more on The Crypto Basic – Bitcoin, Cryptocurrency, DeFi Topics And News
