Potential Timing for Cardano's Anticipated Breakout: Insights from a Cryptocurrency Trader
Crypto Expert Suggests Cardano (ADA) Could Be Nearing a Highly-Anticipated Breakout
In a message to his 31,100 followers on the X social media platform, Ali Martinez speculates that Cardano (ADA) might break above the upper limit of its long-lasting consolidation range as soon as December.
Martinez draws parallels between the current consolidation pattern of Cardano and the 2018-2020 phase. He notes, "The current consolidation trend of Cardano closely resembles the 2018-2020 phase. If history repeats itself, ADA may remain within this consolidation phase until July 2024. However, unless unforeseen events, such as the COVID-19 crash, occur, there is potential for ADA to break out as early as December!"
The trader's analysis indicates that for Cardano (ADA) to initiate a potential rally, it needs to surpass the $0.50 threshold. If this milestone is achieved before the end of the year, he speculates that ADA could potentially reach the $6 level by the close of 2024.
As of the current update, ADA is trading at $0.24.
Additionally, the trader shares insights on Bitcoin (BTC), highlighting the importance of BTC closing convincingly above $28,233 to trigger a bullish cycle. This assessment is based on the Warm Supply Realized Price indicator, which considers the less active segment of the short-term holder supply up to the commencement of the long-term holder cohort.
"According to the Bitcoin Warm Supply Realized Price indicator, the resurgence of the bull market is contingent on BTC achieving a sustained close above $28,233!"
Ali Martinez closely monitors the Relative Strength Index (RSI), a momentum indicator used to assess whether an asset is in an overbought or oversold condition.
Regarding Bitcoin (BTC), Martinez highlights the effectiveness of the four-hour chart RSI in identifying local highs and lows over the past month. He outlines a straightforward strategy: buying BTC when the RSI falls below 30.35 and selling when it surpasses 74.21.
He points out that the RSI has recently dropped below the 30.35 threshold, indicating a potential opportunity to buy the dip in BTC.
The trader discusses the Tom DeMark (TD) Sequential indicator, known for identifying potential trend reversals by analyzing a sequence of price points. According to the indicator, Ethereum (ETH) is currently in a stable range. Notably, the TD Sequential indicator has generated a buy signal at the lower boundary of this range, indicating the possibility of ETH rebounding to $1,630.
However, caution is advised, as the trader suggests that if ETH closes below the $1,530 mark, the bullish outlook may no longer be valid.
As of the time of this update, Ethereum is trading at $1,536.
Oct 13, 2023