A popular crypto analyst and trader Capo says Cardano (ADA) may rally to all-time highs as it exits a key support area.
The crypto strategist known in the crypto market as Capo tells his 224,800 Twitter followers that Cardano could be on its way to a rally that will quadruple its price, provided it stays above a long-term support level.
“ADA is gearing up to test the previous all-time high for the second time. As long as it stays above this level, the next level could be $3 to $4. This is an all-time high. If it consolidates above this level, we will probably see $10.”
Cardano is currently trading at $1.42, about 54 percent lower than its all-time high of $3.10.
While Cardano (ADA) has been following a sluggish price movement lately, it failed to realize the expected price increase after the Alonzo update. However, the number of wallets holding ADA has reached record highs. According to the data of the Cardano Foundation, within a year, the number of wallets increased by 1200 percent from 190 thousand to 2.5 million as of December 24, 2021. While ADA ranks 6th in terms of market capitalization, several updates to the ecosystem have also increased interest in the project.
The crypto analyst, who is optimistic about Cardano, is also examining Bitcoin (BTC) by analyzing the demand displayed on the crypto derivatives exchange FTX.
FTX Users Willing to Switch to BTC
Looking at Bitcoin's heatmap, which determines the depth of liquidity in the market, Capo says FTX users are eager to gravitate towards the leading crypto asset.
"FTX is now adding even more demand. It's a bullish indicator and that doesn't mean orders need to be fulfilled."
In the short term, Capo emphasized that he expects Bitcoin to rise to $ 55,000. As for the overall crypto market, Capo said he expects the bull cycle to continue at least until the beginning of the second quarter of 2022.
“I think this bull cycle is going to last longer than most people expect and should be on the rise by 2022, at least by April.”