Recently, a crypto analyst known as ‘More Crypto Online’ has shared his thoughts on the future trajectory of Cardano (ADA). Contrary to the expectations of a rally, he believes that the altcoin is poised for further decline. According to the analyst, Cardano is currently in its 3-wave corrective rally based on the Elliot Wave Theory. This theory consists of five waves, with three being bullish and two bearish. If the analyst’s analysis is correct, then Cardano is yet to establish the fourth wave, which is a bearish wave. This suggests that the price of ADA could potentially break down even further.
The analyst highlighted that Cardano’s price fell below the $0.48 support level, which is significant for the altcoin. This, combined with the impending fourth wave as per the Elliot Wave Theory, indicates a potential price crash. The analyst predicts that Cardano could drop to as low as $0.42 before experiencing a recovery. However, once the fourth wave is complete, it could pave the way for the most bullish wave, the fifth wave, which may see ADA surpass $1.
Despite the bearish outlook presented by the crypto analyst, there are indicators that suggest a more positive sentiment towards Cardano. For instance, major Cardano metrics continue to show bullish divergence. The daily trading volume of ADA has increased by almost 17% in the last day, surpassing $286 million. This surge in trading volume indicates a resurgence of interest in the altcoin, potentially leading to a bullish trend in the short term. Furthermore, the current uptrend in price suggests that the majority of transactions are driven by buyers, indicating a positive outlook for ADA’s price.
As of the time of writing, Cardano is maintaining its position above $0.45, with a 1.78% increase in the last day. While the analyst predicts a price decline in the short term, the overall market sentiment and trading activity seem to suggest a potential bullish trend for Cardano. It is important to note that investing in cryptocurrencies carries risks, and individuals should conduct their own research before making any investment decisions. NewsBTC does not endorse any specific investment actions and advises caution when trading digital assets.
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