Cardano (ADA) has been experiencing a bearish trend in line with the overall weakness seen in the crypto market, particularly Bitcoin. A prominent analyst from the Austin Hilton YouTube channel, renowned for covering cryptocurrency price analysis and predictions, has shared a video update on Cardano’s near-term outlook. The analyst utilizes Elliot Wave analysis, a technical analysis method that predicts future price movements by identifying repetitive wave patterns in market trends.
The analyst argues that Cardano is currently in the process of unfolding wave C, as part of a larger corrective pattern, following an incomplete wave B top. This conclusion is supported by the fact that ADA’s price movement mirrors the overall market weakness, with Bitcoin also exhibiting a bearish scenario. While the analyst suggests that Cardano’s local top has likely been reached, a break below the $0.54 level is necessary to confirm the start of wave C. The first level of support is expected to be around $0.507, which aligns with the 23.6% Fibonacci retracement level of the recent advance. Additionally, the analyst highlights the $0.438 level (38.2% Fibonacci retracement) as the subsequent area of anticipated support.
The analyst further predicts that Cardano could enter a prolonged and complex fourth wave, which may last several weeks. During this period, the price movement might develop into a triangle consolidation or another intricate pattern, before eventually resuming a fifth wave rally. However, the analyst emphasizes that for long-term upside hopes to remain intact, the $0.345 level must hold as a crucial support level.
Based on the Elliot Wave analysis, it appears that Cardano is currently facing significant downward pressure. The analyst’s bearish outlook suggests that ADA’s price may continue to decline in the near future. While the local top has potentially already been reached, a break below the $0.54 level would confirm the start of wave C, indicating further downside movement.
If the bearish trend continues, Cardano’s price is expected to find initial support around $0.507, followed by the $0.438 level. These levels correspond to the Fibonacci retracement levels and are likely areas where buying pressure may emerge. Nevertheless, the analyst warns that ADA’s price movement might become more complex and protracted in the fourth wave, possibly lasting for several weeks.
Looking ahead, it is crucial for Cardano’s long-term prospects that the $0.345 support level holds. Maintaining this level would provide a foundation for a potential recovery and an eventual fifth wave rally. However, if the $0.345 level is breached, it could weaken the upside potential for ADA and increase the likelihood of further downside.
Cardano’s near-term outlook, as analyzed through the prism of Elliot Wave analysis, presents a bearish scenario. The analyst suggests that ADA’s price action is closely correlated with the overall weakness in the crypto market, particularly Bitcoin. While the local top may have been achieved, the confirmation of wave C’s commencement requires a break below the $0.54 level. Support is anticipated at $0.507 and $0.438, with Cardano potentially entering a prolonged and complex fourth wave. The $0.345 support level is crucial for sustaining long-term upside hopes. However, if breached, it could weaken Cardano’s prospects, leading to further downside.
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