Sun, 25/08/2024 – 15:03
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Dan Gambardello reports that Cardano (ADA) is approaching its 20-month moving average, an important indicator of potential price movement. Historical data suggests that when ADA has touched this moving average in the past, the token has experienced a dramatic spike.
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The 20-month moving average is a technical analysis tool used to smooth price data by creating a constantly updated average price calculated by averaging the price of an asset over the past 20 months. It helps identify long-term trends and potential turning points in the market.
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Gambardello attached an ADA price chart to his post. There you can see that the last time the price of the Cardano token touched a 20-month moving average, it increased by more than 5,000% — from $0.06 to an all-time high of $3.1 per ADA.
If this is possible?
If this happens again, the price of the Cardano token could skyrocket from the current $0.385 to $19.25 per ADA. Incredible indeed. But if this is possible? Seems that the probability is low. If ADA ever reaches such highs as almost $20 per token, it will mean that the market cap of it is $719.08 billion.
For example, Ethereum now has only a $332.8 billion market cap. More to it, such a large figure will make Cardano the 10th largest company in the world on par with Broadcom, higher than Tesla.
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While the historical precedent shows remarkable gains, the probability of ADA reaching such heights is speculative, and Cardano investors should consider these factors when evaluating the potential future performance of their favorite crypto asset.
