The outlook for Cardano (ADA) token remains uncertain as analysts show caution amidst recent price movements. While there has been some upward momentum in ADA’s price, skepticism remains about a sustained uptrend. In this article, we will explore the analysis of a cryptocurrency analyst and examine the potential short-term scenarios for ADA’s price.
The cryptocurrency analyst from More Crypto Online’s YouTube channel recently released a new analysis video discussing Cardano’s price outlook. The analyst acknowledges the recent green candle on the price chart, which indicates upward momentum. However, the analyst remains skeptical of this being the start of a sustained uptrend.
The analyst points out that despite the presence of green candles, there is no substantial evidence suggesting they have reached their tops. This lack of evidence raises doubts about the sustainability of ADA’s recent price movements.
The analyst presents two potential short-term scenarios for ADA’s price. In the first scenario, ADA forms an ABC corrective pattern after a preceding downtrend. This would involve a bounce to around $0.72 before resuming the downtrend, aligning with the analyst’s bearish outlook.
On the other hand, the second scenario suggests a more complex WXY pattern playing out. This alternative scenario indicates a drop in price from current levels rather than a rally to $0.72. Regardless of the scenario, the analyst maintains the view that ADA is in a larger-degree corrective fourth wave following a previous bull run.
While the short-term scenarios present different possibilities, the analyst’s medium-term outlook remains consistent. The analyst expects lower prices over the medium term, potentially reaching levels as low as $0.50 or $0.39.
To assess the further downside potential, the analyst highlights the importance of the 54.3 to 54.4 cent level as key support. A decisive break below this level would confirm the start of another downward leg in ADA’s price.
The outlook for Cardano (ADA) remains uncertain, despite recent upward momentum. The analysis by a cryptocurrency analyst suggests caution and skepticism towards a sustained uptrend. While short-term scenarios provide different possibilities, the analyst maintains the view of a larger-degree corrective fourth wave. Traders should closely monitor the key support level and be prepared for potential lower prices over the medium term.
Leave a Reply