Here’s How Cardano Price Will ‘Survive’ A US Recession: Crypto Analyst
06 Settembre 2024 - 7:30PM
NEWSBTC
In a new video analysis, popular crypto analyst Dan Gambardello
delved into the potential future of the Cardano (ADA) price amidst
the troubling forecasts of a US recession. With a significant
following of 369,000 on YouTube, Gambardello highlighted the
general unease among ADA holders and general crypto investors due
to the ongoing economic discourse surrounding a potential
recession. Will Cardano Bottom 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.” This observation is crucial as it sets a potential timeframe
for when investors might expect the crypto market, including ADA,
to bottom out. “I give it a 50/50 odds that we’re in a recession
now. Check this out. The Fed has signaled that September interest
rate cut is coming all but two times in history when the Fed has
started to cut rates, a recession followed,” Gambardello suggested
and explained that recession starts are usually only declared to
have started once they have already begun. He further explained
that the prevalent discussion about the US already being in a
recession could impact investment strategies. According to
Gambardello, if history repeats itself, the market could see its
lowest point in December 2024. He based this on a detailed look
back at market downturns since 1957, which typically show
significant movements three months following the onset of a
recession. Related Reading: Stunning Fall From Grace: Cardano
Suffers 90% Plunge In Market Share Since ’21 “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 noted.
Gambardello then addressed the Federal Reserve’s signals about
upcoming interest rate cuts, which historically have been followed
by recessions. This pattern adds another layer to the already
complex market analysis, suggesting that a recession might indeed
be imminent or already underway. “All but two times in history when
the Fed has started to cut rates, a recession followed,” he
remarked, highlighting the gravity of the current economic signals.
Shifting focus to Cardano, Gambardello juxtaposed ADA’s current
market performance against its historical data. He pointed out
that, similar to previous cycles, ADA is currently down by 89% from
its peak, closely mirroring its past downturns where it was down by
94% at similar points. Related Reading: Crypto Analyst Explains Why
Cardano Remains ‘Fundamentally Bullish’ “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. Moreover, he analyzed Bitcoin’s influence on
altcoins like Cardano. He discussed the potential for an ‘altcoin
season,’ a period when altcoins typically surge if Bitcoin’s market
dominance begins to wane. According to his analysis, such a season
isn’t currently in play but could be on the horizon, correlating
with his predicted market bottom in December. “Most altcoins,
especially the blue chips, especially the top altcoins, are going
to fly when market bottoms and crypto bounces,” Gambardello said.
Concluding his analysis, Gambardello adopted a cautiously
optimistic tone. He acknowledged the uncertainties inherent in
predicting crypto markets but underscored the importance of
historical patterns and current economic indicators in formulating
investment strategies. He advised his viewers to stay vigilant,
keep an eye on market data, and be prepared for more potential
downside, but also be ready for an explosive growth period that has
historically followed recessions. At press time, ADA traded at
$0.3218. Featured image from Shutterstock, chart from
TradingView.com
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