Crypto analyst and trader Scott Melker is pinpointing the price levels for Cardano and two red-hot altcoins that are critical to maintaining bullish momentum.
In a new strategy session, Melker tells its 36,500 YouTube subscribers that Cardano (ADA) is currently trading in a wide range between $ 1.50 and $ 0.98 but now has an opportunity to break out of consolidation.
“This is beautiful … I would be looking for something like this (rise above $ 1.24) if it continued like this.”
Melker notes that the buy levels for Cardano are at $ 1.20 for a bullish continuation and the breakout and retest is $ 1.50 as support. Should Cardano follow the script, a breakout could potentially catapult ADA to a new all-time high of $ 2.20.
Looking at Dogecoin (DOGE), the trader says they need to reach strong resistance levels before they can build bullish momentum.
“I’d say get it over that line, $ 0.28. Take it off the top [and] We can go up there ($ 0.45). Otherwise, that’s a pretty good resistor. “
Another coin on Melker’s radar is Litecoin (LTC). According to the trader, LTC is trading within a descending channel that it can break out of if it moves above a critical level.
“I would say this is how you act when you are in the USD pair. You get beyond that ($ 250) and then you go here, again $ 370. “
As for Bitcoin, Melker says BTC will need to break its immediate resistance in order to sustain its recovery.
“If you want to get really bullish again, you have to be up here ($ 56,000).”
Should Bitcoin fail to shed $ 56,000 from the resistance to support, there is a risk, according to Melker, that the leading cryptocurrency will trigger another sell-off below $ 50,000.
“If you want to be bearish, there are a few reasons to be bearish on Bitcoin. This looks like a round top like we’ve seen on rounded bottoms … if it falls off again I’d love to see it do this (drop to $ 41,000) and sweep that deep right there. That would give us a huge daily oversold RSI (Relative Strength Index). “
Melker says the drop to $ 41,000 will allow Bitcoin to bottom out and trigger a massive rally to well over $ 72,500.
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Featured image: Shutterstock / Cinzia Murgia