Ray Trader, a notable analyst, projects Cardano to reach $9 upon the completion of a robust Elliott Wave pattern, identifying a level he believes marks a good entry point.
The crypto analyst made this projection in a recent TradingView analysis, spotlighting the ongoing downtrend. Notably, ADA has collapsed by more than 51% from its yearly top of $0.8104. This is primarily due to the sustained market decline, which intensified in late May due to Bitcoin’s drop.
ADA Upsurge and Subsequent Drop
In his report, Ray Trader referred to this Cardano collapse as a “huge dump.” However, data from his chart suggests that his analysis made provisions for the crash. The market watcher’s analysis leverages the Elliott Wave pattern, which analyzes the natural ebb and flow of market sentiment, aiming to predict price movements through identified wave structures.
Notably, the first wave started when Cardano dropped to a cycle low of $0.2200 in June 2023 and completed on the back of this year’s peak of $0.8104, attained in March. Following the completion of Wave 1, ADA began the second wave, which brought about the extensive correction.
This correction has dealt a blow on investor sentiment as market metrics hit surprising lows. Last month, Santiment confirmed that Cardano’s Market Value to Realized Value (MVRV) ratio had dropped significantly. This metric declined to -12.6%, suggesting that ADA is undervalued and could be primed for a rebound.
Cardano Targets $7 on Wave 3 and $9 on Wave 5
Ray Trader’s recent analysis aligns with this projection from the behavior analytics platform. He says the market is at the endpoint of Wave 2, with Wave 3 set to kick in. This third wave represents the most explosive wave, with a potential to take Cardano to new highs.
In addition to the Elliott Wave structure, Ray Trader identified multiple Fibonacci retracement levels amid the correction. He emphasized that investors should look out for the 78.60 Fibonacci retracement level at $0.3429. According to him, this level marks a good entry point for those looking to capitalize on the Wave 3 rally.
The analyst expects the completion of the third wave to trigger a 3,190% Cardano pump to $7. Ray Trader believes this projected price jump could materialize in 2025. Interestingly, in March, market watcher Jake Gagain asserted that ADA could clinch the $7.5 price in 2025.
Meanwhile, Ray Trader’s ultimate target transcends the $7 price territory. After clinching $7, the analyst sees Cardano witnessing a correction during Wave 4 to hit $4. However, following the correction, Ray Trader predicts a subsequent price pump, potentially leading to $9.
Cardano currently changes hands at $0.3928, with an immediate mission to recover the $0.4 region. Data from IntoTheBlock confirms that ADA bulls have amassed 130.04 billion tokens over the past week. Cardano could leverage this buying pressure for a rebound whenever the broader market receives sufficient strength.
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