Ethereum (ETH) competitor Cardano (ADA) could surge by more than 20% if it convincingly breaks a key supply level, according to a popular crypto trader.
Crypto analyst Ali Martinez tells his nearly 45,000 followers on the social media platform X that ADA “faces a formidable obstacle” in the $0.54 and $0.56 price range.
According to Martinez, nearly 50,000 addresses purchased approximately 2 billion ADA between these price points, suggesting that the holders may sell their Cardano troves just to get out at break-even prices.
However, the trader notes that Cardano may witness a burst to the upside if ADA bulls manage to clear the heavy supply level.
“Overcoming this resistance could pave the way for a bullish move toward $0.68!”
ADA is trading around $0.558 at time of writing. The ninth-ranked crypto asset by market cap is up more than 3% in the past 24 hours.
Last week, Martinez predicted that the price of ADA could go up based on the cryptocurrency’s descending triangle chart pattern.
A descending triangle is generally considered a bearish signal as a continuation pattern in an established downtrend, but a breakout in the opposite direction known as a reversal pattern is bullish.
Says Martinez,
“A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68!”
Martinez also notes that top memecoin Dogecoin (DOGE) has witnessed a downtick in transaction volume and whale transaction count, which typically indicates lower trading activity.
“This could be a sign that fewer people are buying, selling, or transferring DOGE, possibly due to reduced interest or confidence in it!”
At time of writing, DOGE is worth $0.082.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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The post Cardano Could Witness Over 20% Rally if It Breaks 2,000,000,000 ADA Supply Level, According to Crypto Analyst appeared first on The Daily Hodl.