Crypto trader and analyst Michaël van de Poppe is keeping a close watch on Cardano as he maps out the critical areas that must prevail in order to sustain ADA’s bullish momentum in both its BTC and USDT pairs.
In a new video, the trader tells his 105,000 YouTube subscribers that ADA/BTC must hold its immediate support, or it could see a significant correction.
“If we look at the support in general, we can find one in the area that we have here (0.000039). You preferably want to see Cardano hold this entire range, especially given that we’ve had a similar construction previously before we started to continue moving. So you don’t want to see ADA break beneath this entire construction. If that is going to happen, then I’m targeting 2,900 satoshis (0.000029) as the next obvious entry point.”
Looking at the USDT (Tether) pair, Van de Poppe says he’s expecting Cardano to ignite a rally as long as it can stay above a key area. Otherwise, a move down to long-term support of $1.00 is in the cards.
“When you look at the USDT pair, you can see the crucial area of support is also holding up here ($1.38). If that is lost, the entire structure of higher highs and higher lows is being lost in general here, meaning that I’ll be looking at the $1.00 area in general for Cardano at this stage. But if we do hold here ($1.38), you want to see the Bitcoin pair bouncing back strongly as then we can start targeting the resistance ($1.85), and then we might be starting to target new highs as well.”
As for Bitcoin, the crypto analyst says BTC has managed to keep the bears at bay, and he believes that is a signal for a move above resistance at $40,000.
“On the lower timeframe, on the recent price action, we’ve had a fakeout to the downside. We failed to break further down, so we failed to flip this level ($34,500) for resistance through which we are back into a range construction and are eager to test the upper bound resistance of the range which is between $39,000 to $41,000.
In that case, most likely, we’re going to have such a breakout to the upside, meaning that we most likely have reversed as we’ve had this test to the downside, and we have avoided any further downwards momentum.”
0Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/KHIUS