A widely followed crypto analyst says that smart contract platform Cardano (ADA) has formed a chart pattern that potentially indicates an upcoming rally.
In a new thread, crypto strategist Ali Martinez tells his 44,000 followers on the social media platform X 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.
Martinez says Cardano may surge to $0.68 once it starts moving to the upside. The crypto asset is currently trading for $0.53, up by 4.45% over the last 24 hours.
“Cardano shows signs of a descending triangle formation on its daily chart. A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing ADA up to $0.68!”
Last month, the crypto analyst and trader also said that Cardano may see gains of over 1,300% as the asset goes through a consolidation phase similar to that in 2020 which catapulted ADA to its all-time high price of over $3, an increase of more than 2,900%.
According to data from the market intelligence platform IntoTheBlock, a significant percentage of Cardano investors are long-time holders of the asset.
“23% of Cardano holders have held their ADA for more than 5 years.”
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