Trader and analyst Ali Martinez says the technicals for two altcoins are looking bullish as the total crypto market cap reaches a 19-month high.
Starting with Polygon (MATIC) rival Optimism (OP), Martinez tells his 38,100 followers on the social media platform X that the Ethereum layer-2 crypto project has formed an ascending parallel channel on the three-day chart and is in “price discovery mode”.
An ascending parallel channel pattern is formed when the price of an asset is contained within three parallel trend lines. When price moves below the middle line of an ascending parallel channel pattern, it is typically considered to be a bearish move. When price moves above the middle line of the ascending parallel channel pattern, it is typically considered to be bullish.
“With this pattern in play, OP might be setting its sights on the channel’s upper boundary, potentially targeting around $6.”
Optimism is trading at $3.81 at time of writing, about 57% below the target of $6.
Turning to Cardano (ADA), Martinez says the eighth-largest crypto asset by market cap has formed a symmetrical triangle on the four-hour chart. According to Martinez, Cardano could surge if it establishes strong support above $0.63.
“Such a move [a sustained candlestick close above $0.63] will trigger a breakout that could set the stage for ADA to rally toward $0.78.”
Cardano is trading at $0.648 at time of writing.
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