Ethereum (ETH) rival Cardano (ADA) could rise more than 20% if it convincingly breaches 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
According to Martinez, nearly 50,000 addresses purchased approximately 2 billion ADA between these price points, suggesting that holders could sell their Cardano treasures to arrive at break-even prices.
However, the trader notes that Cardano could witness a rally to the upside if ADA bulls manage to break the high supply level.
“Overcoming this resistance could pave the way for a bullish move towards $0.68!”
ADA is trading around $0.558 at the time of writing. The ninth-ranked crypto asset by market capitalization is up more than 3% in the past 24 hours.
Last week, Martinez predicted that ADA’s price could rise 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, also called a reversal pattern, is bullish.
says Martinez,
“A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially providing momentum $ADA down to $0.68!”
Martinez also notes that top memecoin Dogecoin (DOGE) has witnessed a decline in transaction volume and the number of whale transactions, which generally 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 the time of writing, DOGE is worth $0.082.
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