A popular crypto analyst says Ethereum (ETH) challenger Cardano (ADA) may be approaching a long-awaited breakout moment.
Ali Martinez tells his 31,100 followers on the social media platform X that ADA could move above the upper bound of an enduring consolidation range as early as December.
“Cardano’s current consolidation trend eerily mirrors the 2018-2020 phase! If history repeats, ADA could stay in this consolidation phase until July 2024.
Barring unforeseen events like the COVID-19 crash, ADA could break out as soon as December!”
Looking at his chart, the trader is looking for ADA to cross the $0.50 mark. If that happens before the end of the year, he believes it would likely surpass the $6 level by the end of 2024.
ADA is trading for $0.24 at time of writing.
The trader is also weighing in on Bitcoin (BTC). He says the crypto king needs to convincingly close above $28,233 to ignite a bull cycle. He bases the prediction on the Warm Supply Realized Price indicator, which comprises the less active component of the short-term holder supply, right through to the start of the long-term holder cohort.
“Bitcoin Warm Supply Realized Price indicator suggests that the bull run will only reignite if BTC secures a sustained close above $28,233!”
Martinez is watching the Relative Strength Index (RSI), a momentum indicator that aims to determine if an asset is overbought or oversold.
“Bitcoin: In the past month, the four-hour chart RSI has been the real MVP for spotting those local highs and lows!
The strategy is simple: buy BTC when RSI dips below 30.35. Sell BTC when RSI exceeds 74.21.
Notice the RSI recently dropped below 30.35, signaling a potential buy-the-dip opportunity!”
Next up, the trader says that the Tom DeMark (TD) Sequential indicator, which traces a series of price points to signal possible trend reversals, is suggesting Ethereum could soon bounce.
“Ethereum is moving within a steady range. Interestingly, the TD Sequential presented a buy signal at the lower end of this range, suggesting ETH could rebound to $1,630.
But be cautious: if ETH closes below $1,530, the bullish outlook will be invalidated.”
Ethereum is trading for $1,536 at time of writing.
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Generated Image: Midjourney
