Michaël van de Poppe, a top crypto analyst and trader has mapped out the crucial levels that must be maintained by Cardano (ADA), the fifth-largest cryptocurrency by market capitalization, to sustain its bullish momentum in both Bitcoin (BTC) and Tether (USDT) pairs.
In a new video, Van de Poppe told his teeming subscribers on YouTube that ADA/BTC must hold its immediate support to avoid a notable correction.
The trader also said he expects Cardano (ADA) to ignite a rally if it can stay above a key level, or else, a dip to long-term support of $1 should be expected.
Speaking about Bitcoin (BTC) next possible trend, he said that the largest cryptocurrency has managed to silence the bears, which is a sign that a move above $40,000 resistance is on the cards.
Michaël van de Poppe noted:
“If we look at the support in general, we can find one in the area that we have here (0.000039). You preferably want to see Cardano hold this entire range, especially given that we’ve had a similar construction previously before we started to continue moving.
“So you don’t want to see ADA break beneath this entire construction. If that is going to happen, then I’m targeting 2,900 satoshis (0.000029) as the next obvious entry point.”
“When you look at the USDT pair, you can see the crucial area of support is also holding up here ($1.38). If that is lost, the entire structure of higher highs and higher lows is being lost in general here, meaning that I’ll be looking at the $1.00 area in general for Cardano at this stage.
But if we do hold here ($1.38), you want to see the Bitcoin pair bouncing back strongly as then we can start targeting the resistance ($1.85), and then we might be starting to target new highs as well.”
“On the lower timeframe, on the recent price action, we’ve had a fakeout to the downside. We failed to break further down, so we failed to flip this level ($34,500) for resistance through which we are back into a range construction and are eager to test the upper bound resistance of the range which is between $39,000 to $41,000.
“In that case, most likely, we’re going to have such a breakout to the upside, meaning that we most likely have reversed as we’ve had this test to the downside, and we have avoided any further downwards momentum.”