A popular crypto analyst says Ethereum (ETH) challenger Cardano (ADA) may be approaching a long-awaited breakout moment.
Ali Martinez tells According to its 31,100 followers on the social media platform
“Cardano’s current consolidation trend eerily mirrors the 2018-2020 phase! If history repeats itself, ADA could remain in this consolidation phase until July 2024.
Barring unforeseen events like the COVID-19 crash, ADA could break out as early as December!”
Looking at his chart, the trader expects ADA to cross the $0.50 mark. If that happens before the end of the year, he thinks it will likely cross the $6 level by the end of 2024.
ADA is trading at $0.24 at the time of writing.
The trader is also considering Bitcoin (BTC). He say the crypto king needs to convincingly close above $28,233 to unleash a bull cycle. He bases the forecast on the Warm Supply Realized Price indicator, which includes the less active component of the short-term holder supply, through the beginning of the long-term holder cohort.
“Bitcoin Warm Supply Realized Price indicator suggests the bull run will only reignite if BTC manages a sustainable close above $28,233!”
Martinez does watching the Relative Strength Index (RSI), a momentum indicator that aims to determine whether an asset is overbought or oversold.
“Bitcoin: Over the past month, the RSI on the four-hour chart has been the real MVP for spotting those local highs and lows!
The strategy is simple: buy BTC when the RSI drops below 30.35. Sell BTC when the RSI is above 74.21.
Note that the RSI recently fell below 30.35, indicating a potential buy-the-dip opportunity!”
Then the trader say that the Tom DeMark (TD) Sequential indicator, which tracks a series of price points to indicate possible trend reversals, suggests that Ethereum could bounce soon.
“Ethereum is moving in a stable range. Interestingly, the TD Sequential presented a buy signal at the bottom of this range, indicating that ETH could recover to $1,630.
But be careful: if ETH closes below $1,530, the bullish outlook will be invalidated.”
Ethereum is trading at $1,536 at the time of writing.
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Generated image: Midjourney
