Popular crypto analyst and host of Crypto Capital Venture, Dan Gambardello, has shared insights on the XRP lawsuit’s potential impact on Cardano (ADA).
In a YouTube video on Monday, June 19, Gambardello discussed the recent adverse reaction of ADA’s price to the latest regulatory headwinds, including the recent classification of ADA as a security by the SEC in its onslaught against Binance.
He drew a comparison to the Ripple case, stating that a potential settlement for Ripple could be significant for the entire crypto market, possibly marking the bottom of the bear market. Accordingly, he acknowledged that the ongoing XRP lawsuit holds relevance for ADA holders.
Comparing ADA’s price movement to XRP’s in the past, he highlighted the similarities between the behaviour of the two cryptocurrencies, particularly concerning momentum oscillators and other technical indicators for both cryptocurrencies.
“You can see the move for XRP right there, it (oscillator) fell into oversold right and then it kind of just popped up…if we look at ADA now…it just tanked well below the oversold line actually to a historical low. The only two times it’s really touched that area was March 2020 low and the last bear market low eight is there right now. And so, the similarities though right there on the momentum oscillator very similar as well in terms of these two moves XRP versus ADA,” said Gambardello.
The pundit also emphasized the striking similarities in both cryptocurrencies’ Relative Strength Index (RSI), indicating comparable momentum and movement patterns.
Lastly, he highlighted the Moving Average Convergence/Divergence (MACD) indicator for both cryptocurrencies. However, while XRP showcased signs of recovery, with its MACD crossing above the signal line, ADA lagged amid challenging market conditions. Nevertheless, he expressed hope in ADA’s MACD catching up, noting that the indicator turning positive on XRP is “something that we can use to kind of start identifying is Ada going to kind of get closer to being out of this mess.”
Overall, the pundit expressed confidence in the rebounding market, stating that “we could be around a year away from really those bull market doors truly being broken.”
In the meantime, however, he anticipated that ADA and XRP would continue to exhibit volatility given the current uncertainty surrounding the overall market. He cautioned that the two cryptocurrencies remained susceptible to further price declines.
At press time, XRP was trading at $0.49, up 0.27% in the past 24 hours. On the other hand, ADA soared about 2% over the same period and was trading at $0.29.