After touching lows near $0.64 on May 6th, Cardano price has rebounded to $0.72 by May 8th, showing a potential shift in market sentiment. However, a new risk assessment model suggests that the true bull cycle for ADA may still be in its infancy.
Crypto Capital Venture founder Dan Gambardello recently applied a custom risk model to analyze Cardano’s current market conditions. The analysis indicated a Moderate Buy level of 37 on the Long-Term Risk Score, suggesting favorable entry points.
This aligns with past bull cycles where ADA’s risk levels started in the 30s before rapidly increasing as interest grew. For example, during both the 2017 and 2020 cycles, the token’s price reached $1 and well above $3 respectively. The current price of $0.71 is only 77% of its 2021 peak of $3.09,
While the recent price action suggests potential for growth, a technical analysis by Ali Martinez highlights short-term challenges. A 4-hour candlestick chart from Martinez indicates a declining parallel channel, suggesting potential limitations in ADA’s trajectory.