**Cardano (ADA) May Have Bottomed, Setting Up for a 2020-2021 Style Rally, Says Analyst Dan Gambardello**
Crypto analyst Dan Gambardello suggests that Cardano (ADA) has potentially bottomed out, paving the way for a significant rally reminiscent of its 2020-2021 crypto summer surge. According to Gambardello, ADA’s price has been forming a symmetrical rising trend characterized by higher highs and higher lows—a bullish indicator.
If this upward momentum continues, Gambardello believes that ADA could experience a full-blown rally in the near term, targeting a market capitalization between $197 billion and $291 billion. This would translate to a potential price range between $5.41 and $8.
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### ADA Price Retest of Crucial Support Around $0.55
A major factor supporting this bullish outlook is ADA’s consistent rebound from the $0.55 support zone. Since early 2024, this level has acted as a key psychological and liquidity support. Although the price has sporadically dipped below $0.55, it has managed to recover promptly, reinforcing the strength of this floor.
The narrative that ADA is poised for a parabolic rally will gain further validation if the price continues to hold above this important support level in the coming weeks.
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### Whale Selling Stabilizes Ahead of Anticipated Global Liquidity Expansion
Recent on-chain data from Santiment reveal that ADA whales—those holding between 100,000 and 1,000,000 ADA coins—offloaded approximately 4 million ADA last week. This group now holds around 5.82 billion ADA coins.
Importantly, after this sell-off, whale selling pressure has stabilized. This pause in selling aligns with expectations of an upcoming expansion in global liquidity, as the United States Federal Reserve prepares to initiate its much-anticipated Quantitative Easing (QE) program early next month.
This anticipated increase in liquidity is expected to flow into alternative asset classes, including cryptocurrencies, potentially providing further tailwinds for ADA.
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### Strong Network Development Boosts Bullish Sentiment
Cardano’s bullish outlook is also supported by significant progress in network development. Cardano founder Charles Hoskinson recently reminded the community that both Leios and the Hydra Layer 2 (L2) scaling solution are on track to be launched by early 2026.
These key updates increase confidence in Cardano’s long-term growth prospects and add momentum to the near-term price outlook.
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### ADA Price Movement in Sync with Broader Crypto Market
The ADA/USD trading pair has been moving closely in line with the broader cryptocurrency market, led by Bitcoin (BTC). Given this correlation, a bullish surge in Bitcoin could further enhance the possibility of a parabolic rally in Cardano.
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**Conclusion**
With solid support around $0.55, stabilized whale selling, global liquidity expansion on the horizon, and promising network developments, Cardano (ADA) appears poised for a substantial price rally. Analyst Dan Gambardello’s prediction of a 2020-2021 style run could soon materialize if these factors continue to align.
Investors and enthusiasts should watch ADA’s price action closely over the coming weeks to confirm whether the $0.55 support level holds strong and propels Cardano toward its next major breakout.
https://bitcoinethereumnews.com/tech/cardano-ada-poised-for-2020-2021-style-rally-after-holding-strong-above-0-55-support/