A new video analysisDan Gambardello is a well-known crypto analyst who has delved deeply into the possible future of Cardano’s (ADA), despite the concerning forecasts for a US recession. Gambardello has a huge following of 369,000 subscribers on YouTube. He highlighted the unease felt by ADA owners and crypto investors in general due to the economic discussion surrounding a potential US recession.
Cardano To Fall In December
He drew parallels between historical S&P 500 behavior and current market conditions, noting, “On average the S&P 500 bottoms three months after a recession begins, but 10 months before the recession ends.” The timing of this observation will help determine when the crypto-market, which includes ADA, is likely to reach its bottom.
I give it 50/50 chances that we are in a current recession. This is what we found. This is what the Fed said. interest rate cut It is true that all but two occasions in history, when the Fed started cutting rates, there was a recession,” Gambardello said. He explained that a recession usually begins only after it has already started.
He explained further that the popular discussion about the US being already in a recession Could impact on investment strategies. Gambardello says that, if past history is repeated, December 2024 may be the lowest point for the stock market. Gambardello based his prediction on the detailed analysis of all market slumps that have occurred since 1957. He found significant changes three months after a recession started.
Read Related Articles
“I just think whenever the bottom will be in, it is going to be explosive […] oftentimes [they declare] it 10 months later and they’re like ‘hey, you know what, the recession started 10 months ago. Nobody, there’s no exact science to when it starts, not like a set date but 3 months after it, the bottom is in for markets,” The crypto analyst has noted.
Gambardello addressed Federal Reserve signals regarding upcoming rate cuts that historically are followed by recessions. The pattern is another way to complicate the market analysis. It suggests that a possible recession could be on its way or even already in progress. “All but two times in history when the Fed has started to cut rates, a recession followed,” He emphasized the importance of current economic indicators.
Gambardello, focusing on Cardano’s ADA, juxtaposed the two current market performance Comparing its data with historical records. He said that, like previous cycles, ADA has fallen by 89% since its peak. This is similar to its prior downturns, where it had been down by 94%.
Read Related Articles
“We’re down 89%. So put it all aside, Cardano is not doing anything different than it did last cycle. And the one thing I did notice though was from this 2018 high to when Ada made its way to where we are right now is, that was around 992 days after that all-time high. This time around and this is why I think it feels a little bit more painful for Cardano holders this time around, we’re looking at almost 1,100 days from all-time high to this moment right so it’s been very grueling,” Gambardello stated.
Additionally, he examined Bitcoin’s impact on altcoins including Cardano. He discussed the potential for an ‘altcoin season,’ a period when altcoins typically surge if Bitcoin’s market dominance begins to wane. His analysis suggests that such a period is not currently underway, but it could soon be, as he predicted a market bottom for December. “Most altcoins, especially the blue chips, especially the top altcoins, are going to fly when market bottoms and crypto bounces,” Gambardello said.
Gambardello concluded his analysis with a cautiously positive tone. Gambardello acknowledged that predicting the crypto market is difficult, but emphasized the importance of current economic indicators and historical patterns in creating investment strategies. His viewers were advised to remain vigilant and keep an eye out for market data. He also encouraged them to be prepared for potential further downsides, as well as an explosive period of growth that historically follows recessions.
At the time of publication, ADA was trading at $0.3218.
Chart from TradingView.com, image from Shutterstock
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com