Cardano’s (ADA) price has dropped by 3.49% over the last week amid a broader correction in crypto markets. Following this bearish trend, the popular altcoin is now trading near $0.90. Ali Martinez, an expert in the market has come up with a bold bullish hypothesis that Cardano could be gearing up for a big upside move.
Analysts Say that ADA’s price structure indicates a possible bullish break out in the near future.
Recent studies have shown that the number of people who are able to speak English is increasing. X postMartinez gives some technical insight on the Cardano Market, which reveals the possibility of a major price movement based upon historical prices and Fibonacci levels. Notably, Martinez’s analysis shows how ADA previously topped between the 1.000 and 1.272 Fibonacci extension in its last bull run and appears to be showing similar technical structure this time around.
Fibonacci extensions are widely used as a tool to help identify price targets. This is done by mapping Fibonacci numbers against price history. Cardano surged in its last cycle from a low of $0.018 at the beginning of 2020, to peaks around $3.10 by 2021.
ADA has been consolidating around the 0.618 level of extension at $1.15. It has always been a key battleground between bulls and traders, as this zone is both a strong support and resistance. If ADA can decisively break above $1.15, Martinez’s projections suggest momentum could build toward higher Fibonacci extension targets, most notably in the $3-$6 range.
A move like this would result in a large increase from current prices, and a gain of about 200% is required to even reach the $3 level that coincides with 1.000 extension. Cardano would be back on track to reach its highs of 2021 if it were to achieve the projected upper limit near $6. This is aligned with the Fibonacci Extension Level 1.272.
However, it’s worth noting that a rejection at $1.15 resistance level could force Cardano to lower levels at $0.62 (0.382 Fib) and $0.43 (0.236 Fib).
Cardano Market Overview
Cardano’s (ADA) price is $0.89 at the moment of this article, a decrease of 0.41% from the previous 24 hours. The market has been under pressure due to selling. A 49.53% drop in daily trading volume is also indicative of waning activity among traders.
Recently, on-chain data Ali Martinez reports that over 530,000,000 ADA (472.5 million dollars) worth of whale movements have been offloaded during the last 72 hours. These large-scale sales often indicate profit-taking, or that major holders are repositioning their positions. They also add to the negative sentiment.
Despite this, ADA continues to rank as the 10th largest cryptocurrency with a total market cap of $32.03 billion.
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Source: www.newsbtc.com
