Popular crypto strategist Michaël van de Poppe is analyzing the path of Cardano (ADA) as traders await the Alonzo update that will bring smart contracts capability to the blockchain.
In a new video, van de Poppe says ADA is breaking out of key resistance levels as it moves upwards.
“Cardano is breaking through resistance, and we’ve had a slight consolidation and now a new breakout to the upwards momentum, in which I do remember correctly that we were saying – hey, the level around $1 is pretty much a very heavy support zone, could be a trigger for a long entry…
You can see that everything is waking up right now, but still facing heavy resistance zones. Bitcoin is doing that. Ether is doing that. Litecoin will be doing that. And now Cardano made a big breakout upwards, too.”
Despite Cardano’s rally, van de Poppe says that he does not recommend buying the cryptocurrency right now at around $1.852 because of key price barriers.
“Should you be entering Cardano at this point? No. Cardano is currently facing this resistance here too … in which the entry point that you’re looking at is either this retest [around $1.47] or this retest here [around $1.33]. That is where you should be looking for a trade on Cardano because the stop-loss is very easy to place if you look for those entry points. If you don’t get it, move on. Move to the next.”
Van de Poppe then identifies what he sees as the target price for Cardano should the coin continue its upward track.
“What is the target zone if Cardano is going to continue moving? That is very simple. We are looking at a continuation with Fibonacci extension… The next target zones for Cardano in a new impulse wave is $3.35 and $5.00.”
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/Triff