Dan Gambardello reports that Cardano (ADA) is approaching its 20-month moving average, an important indicator of potential price movement. Historical data suggests that when ADA has touched this moving average in the past, the token has experienced a dramatic spike.

The 20-month moving average is a technical analysis tool used to smooth price data by creating a constantly updated average price calculated by averaging the price of an asset over the past 20 months. It helps identify long-term trends and potential turning points in the market.

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Gambardello attached an ADA price chart to his post. There you can see that the last time the price of the Cardano token touched a 20-month moving average, it increased by more than 5,000% — from $0.06 to an all-time high of $3.1 per ADA.

If this is possible?

If this happens again, the price of the Cardano token could skyrocket from the current $0.385 to $19.25 per ADA. Incredible indeed. But if this is possible? Seems that the probability is low. If ADA ever reaches such highs as almost $20 per token, it will mean that the market cap of it is $719.08 billion.

For example, Ethereum now has only a $332.8 billion market cap. More to it, such a large figure will make Cardano the 10th largest company in the world on par with Broadcom, higher than Tesla.

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While the historical precedent shows remarkable gains, the probability of ADA reaching such heights is speculative, and Cardano investors should consider these factors when evaluating the potential future performance of their favorite crypto asset.

However, if historical performance holds any predictive value, the token could be on the verge of a major breakout.

Ripple Leaves Bitcoin Playing Second Fiddle

An evaluation of the XRP/USD pair on the weekly chart dated back to March 2021 showed that cryptocurrency trades in a crucial demand area. During that time, XRP’s price changed hands between $0.60 and $0.61.

By late April 2021, XRP surged to $1.55, marking a gain of over 100% in less than two months. A similar rally took place in July of that year when the altcoin jumped from $0.60 to $1.28.

The current market setup suggests XRP might be mirroring this pattern. If broader conditions turn bullish, XRP could see another significant breakout. Supporting this outlook, the Relative Strength Index (RSI) during those past rallies reached high levels, confirming the strength of the bullish trend at the time.

Read more: Getting Started With XRP Wallets

From the chart below, the RSI seems to be rising, and if the upswing continues, XRP has a higher chance of validating the outlook.

Another chart supporting the movement is the XRP/BTC weekly chart. From the chart below, Bitcoin (BTC) has been outperforming XRP since July 2023. 

The last time the altcoin trampled over the number one cryptocurrency was during the period when XRP was confirmed not to be a security. But as of this writing, Bitcoin is no longer performing better; instead, XRP has been dominating since last month. 

In the same vein, pseudonymous analyst Crypto Michael told his 46,600 followers that the cryptocurrency’s bullish breakout is very close. Referring to his analysis published in July, Michael highlighted that XRP could break above a seven-year bullish pennant.

“The sacred XRP mega pump is imminent,” the analysts noted.

XRP Price Prediction: Return to the Local High Imminent

Currently, XRP trades comfortably above the 20-day (blue) and 50-day (yellow) Exponential Moving Averages (EMAs) on its daily chart. The EMA is a technical indicator used to gauge market trends and predict future price movements. When a cryptocurrency’s price remains above the EMA, it indicates a bullish trend, whereas prices below the EMA suggest a bearish outlook.

In XRP’s case, the price holding above both the 20 and 50 EMAs signals a bullish trend. Additionally, the golden cross—a bullish pattern that occurs when a shorter EMA crosses above a longer one — further supports this positive sentiment.

If this pattern continues, XRP could target $0.65 in the short term. However, ongoing developments in Ripple’s lawsuit with the SEC still pose a risk to this outlook.

Read more: Everything You Need To Know About Ripple vs SEC

If the regulator appeals the ruling and wins, XRP’s bullish momentum could be disrupted, making it unlikely for the token to surpass $1 during this market cycle. In that scenario, XRP’s value could drop to around $0.48,

• Solana’s momentum is trying to flip bullishly.
• A continued increase in capital inflows would help a SOL move toward and beyond $163.

Solana [SOL] was trading at the key $157 level mentioned in an earlier report. A breakout past the $160 resistance could open up a path toward $180 before a reversal can ensue. However, the buying pressure began to wane in recent hours.

The longer-term analysis showed an Adam and Eve pattern emerging, which again promised bullish results. Should traders prepare for a Solana breakout?

Has Solana formed a smaller range?

Source: SOL/USDT on TradingView

The range formation (purple) extended from $122 to $187. Around the mid-point at $154, another range (red) between $138 and $163 appeared to form. The past few hours of trading saw SOL approach the $163 mark and get rejected.

The MACD showed momentum was beginning to turn bullish but was not quite there yet. The CMF rose to +0.13 on the 24th of August to indicate strong capital inflows but was at +0.05 once again.

This suggested a potential retracement, but it might turn out to be only a $154 support retest before a renewed push higher.

Does liquidity favor a pullback below $140?

Source: Hyblock

AMBCrypto found that the $135 and $187 regions had a notable amount of liquidation levels but were considerably far away from current market prices. This marks them as a potential target, based on whether $162 or $145 is breached first.

Is your portfolio green? Check the Solana Profit Calculator

The $164 area was also an area of interest. Prices are likely attracted here in the short term.

Whether we see a breakout past the short-term range depends on market sentiment, which at press time appeared to be changing bullishly.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion