As Cardano struggles below key price levels in recent months, concerns of a potential bear market have emerged, but one analyst remains optimistic. Notably, market analyst Dan Gambardello maintains bullishness, arguing that ADA is setting up for a major breakout. In a recent video, Gambardello pointed out that ADA’s retracement is following a pattern similar to previous cycles, suggesting that a major uptrend could be ahead. Cardano’s Price Action and Market Speculation For context, since falling below $1 in late January, ADA has continued to decline, recently dropping below $0.7. This has fueled speculation that the bull market could be over. Gambardello called attention to this sentiment but stressed that it was fine to hold such a belief. “Probably the best way to start this Cardano video is just by recognizing the fact that a lot of people out there think we’re entering a bear market, and that’s completely cool,” he remarked at the start of his analysis. Speaking further, he explained that there are two perspectives in the market: those who believe the bear market has begun and those who see the current price action as a normal cycle retracement. Cardano Technicals Bullish To prove that the bull market remains intact, Gambardello highlighted ADA’s Relative Strength Index (RSI) and moving averages. He pointed out that the monthly RSI is currently retracing to its moving average, a setup seen during the 2020/2021 bull market. He stressed: “We see this RSI right here crossing above this moving average line. So basically, this was the bull market for ADA.” Cardano 1M RSI | Dan Gambardello Additionally, he noted that ADA is consolidating around the 20-week moving average, a level where price action previously preceded a major rally when it aligned with the RSI retracement. He compared this to the 2020/2021 cycle where similar movements occurred right before ADA went parabolic. Meanwhile, another major factor Gambardello discussed is the inverse head and shoulders pattern forming on the ADA weekly chart. He pointed out that in the last cycle, a left shoulder, head, and right shoulder setup led to massive breakouts. However, he initially inverted the ADA chart, which showed a bearish structure. Afterward, the analyst presented the actual chart, explaining that removing emotional bias can help traders see potential bullish setups more clearly. Cardano Inverse Head and Shoulders | Dan Gambardello “It is the ADA chart inverted. And it’s such a healthy exercise to look at this chart because all of a sudden, any barrier to thinking that ADA could actually break out of this head and shoulders is removed,” Gambardello emphasized. Further, he stressed that ADA’s RSI is consolidating around the 50 level, a strong support area. The stock RSI, a quicker momentum oscillator, is also aligning with previous right-shoulder formations before breakouts. Potential Support Zone: ADA Entering New Era Notably, Gambardello pointed out that, as it trades for $0.68, ADA is currently consolidating between the 50-week and 20-week moving averages. If support holds, it could trigger a rally similar to previous cycles. He also pointed out a major historical price level around $0.70, where ADA has previously struggled to hold in previous cycles. According to him, if ADA can flip this level into support and close monthly candles above it, it could be a bullish signal. Gambardello noted that this would mark the new era for Cardano. Notably, with three days left, if ADA can close February above the $0.70 to $0.71 region and start creating higher lows from this area, it could mark the start of a new era. Cardano 1M Support | Dan Gambardello Cardano ETF Developments Interestingly, Gambardello also highlighted major fundamental developments in the Cardano ecosystem. For one, the U.S. Securities and Exchange Commission (SEC) recently acknowledged Grayscale’s application for a Cardano-based exchange-traded fund (ETF). He further revealed that institutional interest in Cardano is growing, with whales accumulating ADA despite the recent price dip. He stated that he personally bought more ADA and this reaffirms his long-term bullish stance. “First off, I bought more ADA today, and trust me, I know, trust me, I do know, especially when I buy, it’s usually not the bottom,” the market analyst disclosed. He added that market fear is at an extreme level, which presents a good buying opportunity for long-term investors. Currently, ADA changes hands at $0.6885, down 7.4% over the past 24 hours. The bulls must recover $0.70 before February closes to have a chance at flipping the momentum. Ultimately, Gambardello sets targets at $7, $10 and $14.2.