The price of the native token of smart contract platform Cardano ($ADA) is set to enter a bull run if it manages to break through a key level that right now hosts a “colossal sell wall,” made up of 3.85 billion tokens being sold.
According to popular cryptocurrency analyst Ali Martinez, the price of ADA has to break through the $0.40 and $0.42 levels, which currently have between them a sell wall of 3.85 billion ADA worth over $1.5 billion, to be able to spark a bull rally as it “faces minimal resistance ahead.”
Notably, the cryptocurrency community is expecting the price of ADA to drop during the month of April, even as its adoption keeps on growing and whales accumulate the network’s native token.
According to users who submitted price estimates, on average, respondents predicted that ADA would end the month of April trading at $0.37 per token, down around 7% from the token’s current price of around $0.3989.
The negative outlook comes even at a time in which Cardano is seeing a surge in buying activity from large investors, colloquially referred to as whales. These large token holders have added a total of 150 million tokens over the past month.
The cryptocurrency analyst has late last month revealed that the price of $ADA could breakout to $0.60 per token after it formed a head and shoulders pattern on the daily chart.
A head and shoulders pattern, it’s worth noting, is a chart formation that predicts a bullish-to-bearish trend reversal, meaning an inverted one means a bearish-to-bullish reversal.
The pattern is characterized by a baseline with three peaks, where one is larger than the other two, resembling a head and two shoulders. It’s considered one of the most reliable trend reversal patterns.
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