Crypto analyst Ali Martinez tells his nearly 45,000 followers on the social media platform X that ADA “faces a formidable obstacle” in the $0.54 and $0.56 price range.
According to Martinez, nearly 50,000 addresses purchased approximately 2 billion ADA between these price points, suggesting that the holders may sell their Cardano troves just to get out at break-even prices.
However, the trader notes that Cardano may witness a burst to the upside if ADA bulls manage to clear the heavy supply level.
“Overcoming this resistance could pave the way for a bullish move toward $0.68!”
ADA is trading around $0.558 at time of writing. The ninth-ranked crypto asset by market cap is up more than 3% in the past 24 hours.
Last week, Martinez predicted that the price of ADA could go up 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 known as a reversal pattern is bullish.
“A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68!”
Martinez also notes that top memecoin Dogecoin (DOGE) has witnessed a downtick in transaction volume and whale transaction count, which typically 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 time of writing, DOGE is worth $0.082.
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