Introduction
The Cardano (ADA) price is showing signs of a potential major rally, with analysts identifying a bullish divergence in the ADA/BTC chart. This technical pattern historically precedes significant price surges, fueling speculation of a 10X increase for ADA.
Why Cardano Could Surge 10X
Bullish Divergence Signals Reversal
Crypto analyst Dan Gambardello highlighted an "insane bullish divergence" on the ADA/BTC chart. This pattern emerges when ADA’s price hits a new low, but the Relative Strength Index (RSI) fails to follow, indicating weakening bearish momentum and a possible trend reversal.
Key Observations:
- A similar divergence occurred in 2021, preceding ADA’s 1,000% rally against Bitcoin.
- ADA’s all-time high of $3.10 was achieved post-divergence.
👉 Explore ADA’s bullish potential
Analyst Predictions for 2025
The DApp Analyst projects an 860% surge for ADA, targeting all-time highs above $3 by Q1 2025. Factors driving this outlook:
- Monetary Policy Shift: Expected Federal Reserve rate cuts could increase liquidity in crypto markets.
- Cardano’s Maturity: ADA is now viewed as a credible investment, shedding its speculative reputation.
- Bond Yield Correlation: Declining U.S. Treasury yields historically align with ADA price spikes.
Market Context
- Altcoin Season: 2025 may witness a broader altcoin rally, with ADA leading the charge.
- Current ADA Price: $0.319 (as of analysis).
FAQs
1. What is a bullish divergence?
A bullish divergence occurs when an asset’s price makes a lower low, but the RSI indicator forms a higher low, signaling potential upward momentum.
2. How high could ADA price go?
Analysts suggest a 10X rally (to ~$3) is possible if historical patterns repeat.
3. Why is Cardano gaining credibility?
Improved ecosystem development and institutional interest have strengthened ADA’s investment case.
Conclusion
While market volatility persists, Cardano’s technical and fundamental indicators suggest a strong case for a 10X rally. Investors should watch for Fed policy changes and altcoin market dynamics in 2025.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.