Dan Gambardello Warns Traders Against Writing Off Cardano as ADA Eyes $0.40

Market veteran Dan Gambardello has urged traders not to write off Cardano as $ADA approaches a potentially important technical breakout.

Cardano started the week on a positive note as the broader cryptocurrency market staged a recovery. $ADA climbed from an intraday low of $0.23 to around $0.25, strengthening its recent rebound despite the token’s significant decline over the past several months.

While some critics have questioned whether Cardano can regain its previous momentum, Gambardello has taken a different view. He warned traders against dismissing the cryptocurrency, pointing to a technical setup that could support a sharp upward move.

Gambardello Sees Potential Move to $0.40

Gambardello specifically cautioned traders against “writing off” Cardano as $ADA approaches a possible breakout.

According to him, $ADA could reach $0.40 “in an instant” if it escapes its current technical structure. His comment highlights the importance of the resistance levels $ADA is currently testing and the possibility of a stronger rally if the token breaks above them.

The accompanying chart shows $ADA trading around $0.241 while testing an ascending yellow trendline that has recently acted as resistance. Recent candles have moved above the trendline, suggesting that buyers are attempting to push the token into a stronger position above this level.

$ADA Builds Recovery Structure

Meanwhile, $ADA has recovered significantly from its recent low near $0.14 and has formed a series of higher lows. The blue moving average has also turned upward and remains below the current price, indicating that short-term momentum has improved.

Nonetheless, $ADA still faces resistance from the longer-term red moving average, which continues to trend downward from higher levels. Therefore, a sustained break above these resistance areas could play an important role in determining whether $ADA can extend its recovery.

At its current price of $0.24603, $ADA requires a surge of 62.58% to reach the $0.40 target highlighted by Gambardello. Notably, $ADA last traded around the $0.40 level in January 2026 before losing ground.

Gambardello Still Holds $ADA

Gambardello’s latest comments also stand out because he previously reduced his Cardano exposure during the governance crisis that affected the ecosystem in June 2026.

At the time, he disclosed that he had moved part of his $ADA holdings into Sui. Although he has since liquidated some of his Cardano position, Gambardello confirmed that he remains an $ADA holder. However, the exact size of his current $ADA holdings remains unknown.

Meanwhile, Cardano continues to retain much of the gain from yesterday’s broader market rally. $ADA is currently up 5.63% over the past 24 hours, with its market cap rising by a similar percentage to $9.02 billion.

With this valuation, $ADA ranks as the 14th-largest cryptocurrency by market capitalization on CoinMarketCap. Whether it can sustain the current recovery will depend in part on its ability to overcome the resistance levels highlighted in Gambardello’s analysis.