Coin Edition -
- An analyst predicted an exponential rally for ADA but suggested a possible decline for MATIC.
- Fresh demand for ADA could trigger an upswing toward $1.13, the Fibonnaci extension revealed.
- The MACD on the MATIC 4-hour chart indicated severe bearish momentum as the price might fall to $0.92.
According to analyst Ali Martinez, Cardano (ADA) could repeat its 2018 to 2021 performance this cycle, and breakout to $5. Martinez mentioned this in a March 16 post on X. However, the analyst explained that ADA might consolidate between $0.55 and $0.80 for a while.
After that, he noted that the price might jump to $1.70 before another consolidation period that foreshadows a rally toward $5.
So far, #Cardano resembles the pattern observed from 2018 to 2021. Should this fractal continue, anticipate $ADA to consolidate in the $0.55 to $0.80 range in the coming weeks, followed by a surge to $1.70. After this upswing, expect a period of further consolidation, setting… pic.twitter.com/46LIp2hkMx— Ali (@ali_charts) March 16, 2024
Another token Martinez focused on was Polygon (MATIC). At press time, MATIC’s price had decreased by 8.02% in the last 24 hours. This left the value at $1.04.
Using on-chain data from IntoTheBlock, the analyst explained that MATIC might have found support between $1.02 and $1.05. He added that the support was a result of the 608 million tokens bought by 10,900 addresses around that region.
However, Martinez highlighted that MATIC’s price could fall to $0.91 if bulls fail to defend the support mentioned above.
#Polygon has found crucial support between $1.02 and $1.05, supported by 10,900 addresses holding around 608 million #MATIC. Should this support falter, the next essential demand zone lies near $0.91, where 35,700 addresses collectively hold 394.6 million $MATIC. pic.twitter.com/rLn4ymcQf7— Ali (@ali_charts) March 16, 2024
Cardano (ADA)
Like most altcoins, Cardano’s value dropped. Trading at $0.65 as of this writing implied that the cryptocurrency had lost 7.91% of its value within the last day.
Between March 15 and 16, ADA attempted a steady upswing. But the resistance at $0.73 put a stop to that effort. But that was not the major issue that triggered ADA’s dump. From the 4-hour ADA/USD chart, a decisive breach below the $0.70 was the biggest undoing that led ADA’s price down.
If demand continues to wane, the price of the token might lose another 11.51%, down to $0.59. However, the Fibonacci extension indicator showed that a decline to $0.59 could be profitable for Cardano holders in the near term.
This was because the indicator revealed that the token might rally toward $1.13 (4.236 Fib level). Coin Edition also looked at the Chaikin Money Flow (CMF) to ascertain what could happen to ADA in the short term.
ADA/USD 4-Hour Chart (Source: TradingView)
As of this writing, the CMF was in a downward trend like ADA. Since the price and CMF did not diverge, it meant that the price might continue to slide before a rebound appears.
Polygon (MATIC)
The Supertrend indicator on the MATIC/USD 4-hour chart displayed a sell signal at $1.17. However, the buy signal at $1.16 could not hold any water as bears forced the price much lower.
At press time, bulls were trying to find immediate support near $1.03. But inability to resist further bearish pressure could trigger additional downside for MATIC. Should this be the case, the price of the token might decline to $0.92.
Furthermore, the Moving Average Convergence Divergence (MACD) hovered around the negative zone, indicating an intense bearish momentum. The 12-day EMA (blue) sliding below the 26-day EMA (orange) reinforced the notion that sellers were in control.
MATIC/USD 4-Hour Chart (Source: TradingView)
In the current market structure, MATIC might find it hard to bounce. Therefore, a reasonable inference could be that the price might fall below $1, However, a bullish momentum return might drive the token much higher, and hitting $1.50 by that time could be an option.
The post Is Buying the Cardano (ADA) and Polygon (MATIC) Dip a Good Option? appeared first on Coin Edition.