When considering the current state of Cardano (ADA), it becomes evident that its price action is closely aligned with the overall weakness seen in the crypto market, particularly with Bitcoin. According to an analyst from the Austin Hilton YouTube channel, which provides comprehensive coverage of cryptocurrency price analysis and predictions, the outlook for ADA in the near term appears to be bearish.
The analyst primarily utilizes Elliott Wave analysis to support this bearish perspective on Cardano. This technical analysis method involves predicting future price movements by identifying repetitive wave patterns within market trends. In the case of ADA, the analyst suggests that it is currently in the process of unfolding wave C, which is part of a larger corrective pattern following an incomplete wave B top.
While the analyst acknowledges that the local top for ADA may already be in place, it is crucial for the price to drop below the $0.54 level in order to solidify the start of wave C. If this occurs, initial support is expected to be found around $0.507, which aligns with the 23.6% Fibonacci retracement level of the recent advance. However, if the price continues to decline, the next significant area of expected support lies at the 38.2% level, specifically at $0.438.
Anticipating a lengthy and complex fourth wave, the analyst envisions a scenario where this wave could take several weeks to develop. During this period, a triangle consolidation or another complex pattern may emerge before an eventual fifth wave rally resumes. Nonetheless, the analyst cautions that the $0.345 level must be maintained to sustain any hope for upside potential in the long run.
The Austin Hilton YouTube channel analyst offers a critical perspective on Cardano’s near-term outlook. By employing Elliott Wave analysis, they suggest that the current price action of ADA aligns with the broader weakness seen in the crypto market, particularly with Bitcoin. The analyst emphasizes the importance of confirming the start of wave C by observing a drop below the $0.54 level, while also highlighting key support levels at $0.507 and $0.438. Looking ahead, they anticipate a potentially prolonged and complex fourth wave, which could result in a consolidation pattern or other complex formations before a fifth wave rally can occur. However, maintaining the $0.345 level is crucial to uphold any potential upside prospects in the long term.
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