As Cardano (ADA) extended a recent rebound and tested a key resistance line, analyst Dan Gambardello said there was no need to give up on Cardano too quickly.

The Crypto Basic, a blockchain outlet, reported on Monday that Gambardello said ADA was approaching a technically important inflection point. He said it could rise quickly to $0.40 if it breaks out of its current structure.

ADA rose intraday to around $0.25 from $0.23 early in the week as the broader cryptocurrency market recovered. The move followed a steep decline over recent months. Some investors questioned whether Cardano could regain its previous upward momentum, but Gambardello offered a different view.

The key point Gambardello presented was whether ADA can break through resistance. In a chart he shared, ADA was testing an ascending trendline near $0.241 that has recently acted as resistance. Recent candles moved above the trendline, showing buying pressure trying to push the price into a higher range.

Some indicators also improved. ADA rebounded meaningfully from a recent low near $0.14 and formed a pattern of higher lows. A blue moving average also turned upward and moved below the current price, signaling improved short-term momentum. The long-term moving average, shown as a red line, is still falling from a higher level, making it crucial whether ADA can move stably above that resistance area to extend the recovery.

Gambardello forecast that if ADA breaks upward from its current technical pattern, it could rise quickly to $0.40. That would be about a 62.58 percent gain from the current price of $0.24603. ADA last traded near $0.40 in January 2026.

The comments draw attention because Gambardello reduced his ADA holdings during a governance crisis in the Cardano ecosystem in June. He said at the time he converted part of his ADA holdings into Sui (SUI). He later sold additional ADA but said he still holds some. He did not disclose the exact amount.

Market action also supported the short-term rebound view. ADA has risen about 31 percent over the past 7 days, and its market capitalization stood at $9.02 billion.

It is still not confirmed whether this rebound will lead to a trend reversal. ADA has recovered from recent lows, but as Gambardello noted, it needs a break of the key resistance line to raise the chance of a renewed push toward $0.40. Ultimately, Cardano's next move depends less on the rebound itself than on whether it can actually clear the resistance area now being tested.