According to one widely followed analyst, Cardano It is preparing for a big move upwards.
Guy Turner, host of Coin Bureau, says in a new video: Ethereum (ETH) is of the opinion that its rival could execute a bullish formation that could increase its current value by more than 74%.
The collapse that altcoins experienced in October appears to be due to their correlation with small-cap stocks. The reason why small-cap stocks crashed was because long-term interest rates were rising rapidly. Since October, long-term interest rates have fallen at the same rate, resulting in the price of ADA increasing almost 3 times.
Its weekly chart shows that it may be in the process of drawing a bull flag. If this happens, ADA could rise to $1 as it is the next major resistance zone.
NEWS CONTINUES BELOW
The trader also notes that an ADA demand benchmark is also giving a bullish signal.
The only demand metric that gives a bullish signal on Cardano is the total value locked in DeFi (decentralized finance) protocols.
However, the trader warns that there is short-term bearish pressure due to the large number of ADA tokens held by Emurgo, Input Output Global (IOG), and Cardano Foundation, the three main organizations behind the project. Additionally, he says they appear to be selling ADA for financing.
“All three appear to be funded by ADA sales. For example, the Cardano Foundation’s first annual report revealed that most of its treasury consists of ADA. And when you consider the fact that it’s increasing its headcount, it’s safe to assume its expenses have increased, too.
Trader is of the opinion that this development means bullishness for ADA in the long term. On the other hand, according to him, it is likely to indicate a decline in the short term.
altcoinis trading at $0.57 at press time, up more than 2% in the last 24 hours.