Cardano (ADA) may be nearing a significant price movement as crypto analysts point to a declining risk score that has historically signaled market bottoms. According to insights shared by analyst Dan Gambardello, a custom-built risk model now places ADA’s current risk score at 31.
The risk score combines technical and historical data to reflect previous ADA market recovery trends. Markets observed an interesting trend because ADA showed identical warning signs before its recent market recovery in late 2023.
Historical comparisons reveal that ADA’s lowest risk levels, around 6 to 7, occurred during extended bear markets. The start of a bullish market change typically follows periods when ADA risk scores move toward the 30 value range. Current market information shows that the asset builds support to initiate an upward trajectory.
Also Read: Sui Network Overtakes ICP in Developer Activity Amid Bitcoin Security Push
Technical analysts validate a potential market trend change by identifying an inverse head-and-shoulders pattern within the weekly chart. ADA’s current price is at the $0.60 support region, where it faced resistance earlier this year.
Custom Risk Model Supports Technical Bullish Pattern Formation
Market watchers believe a breakout above the downtrend line since early 2024 could confirm a bullish continuation. If the inverse head and shoulders formation is completed, price targets may rise toward $1.51 in the medium term.
Harbor Financial Director Dan Gambardello stressed that the current market consolidation is comparable to ADA’s typical recovery stages. “Around 31 right now… He observed that the previous major bottom when risk stood at 35 ADA had appeared right there, as he pointed to on the chart,” he stated.
Aside from technical milestones, the Cardano community tracks how the ETF approvals proceed. Since Bitcoin and Ethereum obtained regulatory approval for exchange-traded funds, speculation has grown regarding how ADA might be approved next for this category.
Analysts warn that short-term market fluctuations still present challenges to expecting another upward movement in the market. A market sentiment decline could cause ADA to decrease towards $0.50, although no definite ruling exists against this possibility.
Conclusion
Cardano’s current risk positioning, familiar technical setups, and ETF optimism are drawing renewed attention. If historical cycles hold, ADA could be on the verge of a broader market recovery.
Also Read: XRP Records Major Milestone Against ETH – Here’s What’s Happening
