Cardano is currently following an elaborate Elliott Wave structure, with a market analyst expecting the completion of the fifth wave to culminate in a rally to the $6 level.
The market-wide turbulence dealt a blow on Cardano’s price action, triggering a collapse below the $0.62 and $0.60 support levels on April 9. ADA showed resilience following this decline, holding above the $0.55 territory on April 10 and 11 despite the strong bearish pressure.
However, the strength of the bulls waned on April 12, leading to a massive 14.19% decline. This marked Cardano’s largest intraday loss this year. ADA broke below the psychological support levels between $0.54 and $0.50, plunging to a new yearly low of $0.45.
Before April 12, the last time Cardano saw $0.45 was last December. Despite recovering from this $0.45 low on April 12, ADA faced another round of bearish shenanigans, eventually relinquishing the $0.40 level to reach the Dec. 1, 2023 lows at $0.3994. Cardano quickly recovered from this level, but continues to trade below $0.50.
Cardano Trades in an Elliott Wave Pattern
Amid the downtrend, a prominent market analyst known as illuminati_KO27 unveiled a TradingView analysis today suggesting that ADA might actually be following a pattern that would eventually result in a bullish breakthrough. He cited historical data to corroborate his claims.
According to the analysis, Cardano is currently trading within the same five-wave Elliott Wave structure it encountered from 2020 to 2021 that culminated in a rally to an all-time high of $3.31. For context, the Elliott Wave pattern began in March 2020, when ADA changed hands at $0.04.
The first wave saw Cardano rise to $0.14 in August 2020 before collapsing to $0.08 during the second wave. Cardano recovered from this decline, surging to $2.47 in May 2021 upon the completion of wave three. The fourth wave saw a mild decline before ADA rose to $3.1 in September 2021 in the fifth wave.
The latest analysis indicates that Cardano is now following this Elliott Wave structure, having completed the first wave when it rose from $0.24 in October 2023 to $0.81 on March 14. However, ADA is now trading in the second wave, featuring the latest downtrend that saw it drop to $0.3994 two days back.
ADA Could Rise to the $6 Level
Once this downtrend ends with the completion of wave 2, the analyst expects the third wave to take Cardano to the $3.4 territory, aligning with the Fibonacci 1.618 level. Data suggests that ADA could face a correction below $2 during the fourth wave and then soar to the $6 price when wave 5 completes.
Cardano currently trades for $0.4729 despite a 6% increase since yesterday, looking to breach the $0.4969 resistance level for a push toward $0.50. From its current position, ADA would need to increase by 1,168% to reach the projected $6 price.
Despite the ambitious nature of the $6 price, some market analysts predict more audacious targets. For instance, Ali Martinez believes ADA has the potential to reach $9 sometime in the future. Chris, a Cardano proponent, presented two possible scenarios this month which could see Cardano hit $7.7 or $9.7.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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