Crypto analyst and trader Scott Melker is mapping out price levels for Cardano and two red-hot altcoins that are key in keeping their bullish momentum alive.
In a new strategy session, Melker tells his 36,500 YouTube subscribers that Cardano (ADA) is currently trading in a wide range between $1.50 and $0.98, but it now has an opportunity to break out of consolidation.
“This is beautiful… I’d be looking for something like this (move above $1,24) if it continues.”
Melker notes that the buy levels for Cardano for bullish continuation are around $1.20 and the breakout and retest of $1.50 as support. Should Cardano follow the script, a breakout can potentially catapult ADA to a new all-time high of $2.20.
Looking at Dogecoin (DOGE), the trader says it must take out a strong resistance level before it can gather some bullish momentum.
“I would say get it above that line, $0.28. Take it off the top [and] we can go up there ($0.45). Otherwise, that’s pretty good resistance.”
Another coin on Melker’s radar is Litecoin (LTC). According to the trader, LTC is trading within a descending channel, which it can break out of if it manages to move above a crucial level.
“I would say you trade it like this if you’re in the USD pair. You get above that ($250) and then you’re heading up here, $370 again.”
As for Bitcoin, Melker says that BTC must breach its immediate resistance in order to sustain its bounce.
“If you want to get truly bullish again, you gotta be above here ($56,000).”
Should Bitcoin fail to flip $56,000 from resistance to support, Melker says the leading cryptocurrency risks igniting a renewed sell-off below $50,000.
“If you want to be bearish, there’s a few reasons to be bearish on Bitcoin. That looks like a rounding top like we’ve seen on rounding bottoms… If it drops again, I would love to see it do this (fall to $41,000), sweep that low 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 carve a bottom and ignite a massive rally all the way above $72,500.