Cardano (ADA) has fallen 3.49% over the past week amid a broader crypto market correction. The popular Altcoin is trading near the $0.90 priced area following this important bearish activity. But well-known market expert Ali Martinez shares a bold bullish theory that suggests Cardano may be preparing for a big upside-down swing.
ADA’s price structure suggests a bullish breakout ahead, analysts say
In a recent X post, Martinez offers technical insights into the Cardano market. This highlights the possibility of significant price transfers based on historical price actions and Fibonacci expansion levels. In particular, Martinez’s analysis shows whether the ADA previously took the top Fibonacci expansion of 1.000 and 1.272 in the last bull run, and this time appears to show a similar technical structure.
For context, the Fibonacci extension tool is widely used to identify possible price targets with a mapping ratio derived from the Fibonacci sequence to historical price actions. In Cardano’s final cycle, Ada surged from a low of nearly $0.018 in early 2020 to a 2021 high of $3.10 as the cycle peak.
At the time of writing, the ADA has consolidated for $1.15 near the 0.618 expansion level. The zone has historically served as both strong resistance and support, making it an important battlefield for bulls and bears. If the ADA can decisively break above $1.15, Martinez’s prediction suggests that it can gain momentum towards a higher Fibonacci expansion target, particularly the $3-$6 range.
Such a move represents a significant advantage from the current level, and only requires around 200% gain needed to reach the $3 threshold to match the 1.000 expansion level. Meanwhile, achieving the top edge of the projection of nearly $6, Cardano competes with the 2021 high, matching the 1.272 Fibonacci expansion level.
However, it is worth noting that a refusal at a $1.15 resistance level could force Cardano to a lower level at $0.62 (0.382 FIB) and $0.43 (0.236 FIB).
Overview of the Cardano Market
At the time of writing, Cardano (ADA) has fallen 0.41% over the past 24 hours due to heavy sales pressures in the market. Additionally, daily trading volumes have dropped sharply by 49.53%, showing a decline in activity, reducing momentum among traders.
Meanwhile, recent chain data highlights the key whale movements that have been offloaded in the past 72 hours with over 530 million ADAs ($472 million). Such large sales often show profit acquisition or rearrangement by the main owner, increasing bearish feelings.
Nevertheless, the ADA continues to rank as the 10th largest cryptocurrency with a total market capitalization of $32.03 billion.
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