Cardano ($ADA) has been making waves in the cryptocurrency market lately, with many investors and analysts keeping a close eye on its price movements. Recently, a crypto analyst suggested that Cardano could experience a bull rally by overcoming a “colossal sell wall.”
What is a sell wall?
Before we dive into what a “colossal sell wall” is, let’s first define what a sell wall is. In the world of cryptocurrency trading, a sell wall refers to a large number of sell orders at a specific price level. Essentially, it’s a barrier that prevents the price from rising above that level.
For example, let’s say that the current price of Cardano is $1.00. If there are a large number of sell orders at $1.10, this creates a sell wall. If buyers want to purchase Cardano at a higher price than $1.00, they will have to buy through the sell wall, which can be difficult if there are a lot of sell orders.
What is a “colossal sell wall”?
Now that we know what a sell wall is, let’s talk about what a “colossal sell wall” is. This term is used to describe an extremely large sell wall that is difficult to overcome. In other words, it’s a massive barrier that prevents the price from rising significantly.
In the case of Cardano, the crypto analyst suggests that there is currently a “colossal sell wall” at $1.50. This means that there are a large number of sell orders at $1.50, which could prevent the price from rising above that level.
Why could Cardano experience a bull rally?
Despite the presence of this “colossal sell wall,” the crypto analyst suggests that Cardano could still experience a bull rally. This is because there are several factors that could potentially drive up the price of Cardano.
Firstly, Cardano has been gaining a lot of attention lately due to its unique features and potential use cases. It’s a blockchain platform that aims to provide a more secure and scalable infrastructure for decentralized applications. This has attracted the attention of many investors and developers, which could drive up demand for Cardano.
Secondly, Cardano is currently undergoing a major upgrade known as the “Alonzo” upgrade. This upgrade will introduce smart contract functionality to the Cardano network, which could make it more attractive to developers and users. This could also drive up demand for Cardano and potentially push the price higher.
Finally, the overall cryptocurrency market has been experiencing a lot of volatility lately, with many coins experiencing significant price movements. This could create opportunities for Cardano to experience a bull rally, especially if investors are looking for alternative investments to Bitcoin and Ethereum.
While there is currently a “colossal sell wall” at $1.50, there are still several factors that could drive up the price of Cardano and potentially lead to a bull rally. As with any investment, it’s important to do your own research and make informed decisions based on your own risk tolerance and investment goals.