 ▲ Cardano (ADA), Sui (SUI) / AI-generated image |
The business cycle indicator has completed years of compression and is now preparing to enter a full-fledged expansion phase. As a result, analysts suggest that an altcoin bull market may be imminent.
Dan Gambardello, founder and analyst at Crypto Capital Venture, stated in a video uploaded to his YouTube channel on March 4 (local time) that macroeconomic data and individual chart analysis point to the possibility of a strong rebound in the altcoin market. Gambardello emphasized that whenever the business cycle indicator (PMI) shifts into expansion, altcoins have recorded explosive gains, defining the current market environment as a significant opportunity. He also assessed that the altcoin ecosystem’s resilience amid recent geopolitical crises, without collapsing, could serve as a powerful driver of the next bull market.
Contrary to pessimistic market outlooks, key U.S. economic indicators remain very robust. Gambardello noted that employment figures came in at 63,000, far exceeding expectations of 50,000, and projected that the U.S. economy could soon experience a boom. “Although fear is spreading due to geopolitical tensions in the Middle East, the underlying macroeconomic environment remains optimistic,” he said, adding, “After years of being suppressed, economic activity is poised to reawaken.” Historically, economic expansion has meant substantial liquidity inflows into the digital asset market.
Cardano (ADA) is currently experiencing a severe downturn, recording seven consecutive monthly bearish candles on its monthly chart, but this aligns with the formation of a historical bottom. Gambardello explained that the current downtrend closely resembles the chart pattern seen at the end of quantitative tightening in 2019. At that time, Cardano’s price plunged and market confidence collapsed, yet it ultimately marked a perfect reset for a new cycle. He assessed that the present painful period may represent the final stage of turbulence before a full-scale rally.
Sui (SUI) is also signaling a technical reversal on its three-day chart and is approaching a test of key resistance levels. The Relative Strength Index (RSI) has broken above its moving average, and the Moving Average Convergence Divergence (MACD) indicator has turned positive, indicating strengthening buying momentum. Gambardello analyzed that “a breakout above the key resistance zones at $1.22 and $1.65, followed by establishing them as support, will be the watershed moment for future price direction.” He added that “given the volatility of the crypto market, a rapid surge of 30% to 70% within just a few weeks is entirely possible.”
Rather than succumbing to pessimistic headlines, investors should prepare for the forthcoming expansion phase through prudent risk management. Gambardello emphasized the importance of positioning for all possible scenarios and maintaining a bullish outlook on altcoins as indicators point toward expansion. The current alignment of macroeconomic trends and technical analysis is creating a favorable environment for long-term investors.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from decisions based on it. The content should be interpreted solely for informational purposes.