According to data reported by technical analyst Ali Martinez, Alibaba stock (BABA) seems preparing to break out of a parallel channel. The analyst said the breakout could lead to an upward momentum that would push the BABA price to between $160 and $200.
BABA ready for uptrend
Based on his technical analysis, Martinez is seeing some potential bullish indicators, suggesting that BABA is getting ready for a significant move. The token’s price is moving near the bottom of the parallel channel (as indicated in the chart). This formation is interesting as it normally signifies a possible trend reversal.
BABA has been witnessing a prolonged correction trend for some expansive time, with its prices moving between $56.60 and $121.37 for more than a year now. Despite rivals like Tencent and JD.com surging, Martinez is optimistic about BABA’s future price movements. The asset could experience a remarkable breakout soon; with the analyst projecting the asset’s price could surge up to $200.
Meanwhile, prominent technical analyst and trader Peter Brandt seems to back Martinez’s prediction. Brandt believes BABA is an undervalued tech stock – the token still holds dominance in China’s e-commerce, AI, and cloud computing industries. He is convinced that the token’s price could rise two-fold soon. According to a social media post recently, Brandt acknowledged that he is an investor in BABA. Since he has seen it for a long time, he projected the asset’s price next stop is $200.
The asset, which is currently trading at $116.70, is on the brink of seeing a massive uptrend, particularly if it crosses the $121.37 resistance level. The asset has a strong support level between $95.83 and $108.83. This is the rebound zone where buyers are likely to get on board and drive the price up.
Alibaba pushing for crypto future
Alibaba Cloud’s innovations are the catalyst for this market growth. The cloud unit has been investing in innovative projects including digital assets and artificial intelligence, boosting the company’s valuation.
Alibaba has been expanding its presence into virtual currencies through investments, product development, and strategic partnerships.
In March last year, its cloud arm, popularly known as Alibaba Cloud, partnered with AIOZ Network to develop a DEPIN infrastructure in Southeast Asia. Through the collaboration, the AIOZ network used Alibaba Cloud services to broaden its cryptocurrency ecosystem and enhance Web3 storage, streaming, and AI technology.
Most recently, Alibaba Cloud collaborated with the SUI network to offer data vaulting services and cloud infrastructure for Sui validators. Also, recently, NEAR Protocol integrated its infrastructure into the cloud subsidiary to expand the Web3 world in the Middle East and Asia.
With the ever-growing DeFi world, digital asset traders are increasingly seeking to diversify their portfolios. This includes diversifying into valuable assets like Gold, traditional assets like BABA, as well as other investment vehicles like ETFs, and many more.
