A popular crypto analyst has pointed out a significant price level that smart contract platform Cardano (ADA) must surpass for a new rally.
In a recent strategy session, Benjamin Cowen told his 721,000 subscribers that Ethereum (ETH) rival Cardano spent a lot of time last year around $1.20 as both support and resistance. The analyst added that ADA may need the leading crypto asset Bitcoin (BTC) to fuel another rally.
“If we reach that level, the $1.20 threshold, I think it will be a pretty big test for ADA.
It’s definitely not a test one has to fight alone. Obviously, this will depend on whether Bitcoin is successful in breaking its own bull market support band.”
Bitcoin’s bull market support band is a technical indicator that combines BTC’s 20-week simple moving average (SMA) and 21-week exponential moving average (EMA). The charting guru is highlighting the $45,000 to $46,000 range as BTC’s next big test.
“If Bitcoin succeeds in breaking, then the argument would be that ADA is most likely to succeed in breaking as well.
However, if Bitcoin is severely rejected from the bull market support band around $45,000 to $46,000, my general expectation is that ADA will encounter some resistance here and be rejected from its own bull support band. We are struggling at this stage of the market… This is the final point.”
Cowen used the following statements, saying that when the Bitcoin bull market stays below the support band, altcoins in general generally perform poorly against the BTC trading pair:
“Bitcoin, November 29 [2021] It’s been under it since week. If you look at the Bitcoin/ADA review since November 29, it hasn’t done anything that great. It was already below its own bull market support band and has since moved down, climbed to the bull market support band, was rejected and then dropped back down.
Maybe we’re going for another test around 2,500 or 2,600 satoshis (between $1.07 and $1.11).”
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