Cardano prices (ADA) fell 3.49% in last week, in the middle of a wider correction of the cryptography market. Popular Altcoin is now negotiated near the price region of $ 0.90 following this important lower activity. However, renowned expert Ali Martinez shared a daring bullish theory that suggests that Cardano could prepare for an upward major swing.
Ada Price Structure suggests an upcoming upward escape, says the analyst
In a recent post, Martinez provides a technical overview of the Cardano market, which highlights the potential of a large price decision based on historical prices and levels of Fibonacci extension. In particular, Martinez’s analysis shows how Ada previously exceeded the 1,000 and 1,272 Fibonacci extension in her last bull race and seems to show a similar technical structure this time.
For the context, the Fibonacci extension tool is widely used to identify possible price objectives by mapping ratios derived from the fibonacci sequence against the action of historical prices. In the latest Cardano cycle, ADA went from bottom to almost $ 0.018 at the start of 2020 to summits around $ 3.10 in 2021 as a cycle peak.
At the time of writing the editorial time, ADA is consolidated near the extension level of 0.618 to $ 1.15. This area has historically acted both as strong resistance and support, making it a critical battlefield for bulls and bear. If ADA can decisively exceed $ 1.15, Martinez’s projections suggest that the momentum could rely on higher fibonacci extension targets, especially in the fork from $ 3 to $ 6.
Such a decision would represent a substantial increase in current levels, with a gain of approximately 200% alone to reach the $ 3 threshold which aligns the extension level of 1,000. Meanwhile, making the upper end of the projection almost $ 6 would put Cardano in the running with its summits in 2021, which aligned with the level of extension of Fibonacci 1.272.
However, it should be noted that a rejection of $ 1.15 of resistance could force Cardano at levels less than $ 0.62 (0.382 FIB) and $ 0.43 (0.236 FIB).
Overview of the Cardano market
At the time of writing this document, Cardano (ADA) is negotiated at $ 0.89, down 0.41% in the last 24 hours, because the sales pressure weighs on the market. Daily trading volume has also dropped by 49.53%, the signaling of reduced activity and declining the momentum among traders.
Meanwhile, recent data on the chain highlights significant whale movements, with more than 530 million ADAs ($ 472 million) unloaded in the last 72 hours, according to Ali Martinez. Such a large -scale sale often indicates profit taking or repositioning by the main holders, adding to the lowering feeling.
Despite this, ADA continues to rank as the 10th largest cryptocurrency with total market capitalization of $ 32.03 billion.
