Cardano is currently adhering to a complex Elliott Wave structure, and a market analyst predicts that the completion of the fifth wave will lead to a rally to the $6 level.
The recent volatility in the overall market had a negative impact on Cardano’s price action, causing it to drop below the $0.62 and $0.60 support levels on April 9. Despite this decline, ADA showed resilience by staying above the $0.55 mark on April 10 and 11, despite significant bearish pressure.
However, the bullish momentum weakened on April 12, resulting in a substantial 14.19% decline. This was the largest intraday loss for Cardano this year. ADA broke through the psychological support levels between $0.54 and $0.50, reaching a new yearly low of $0.45.
The last time Cardano reached the $0.45 level was in December of the previous year. Although ADA recovered from this low on April 12, it faced another wave of bearish activity, eventually dropping below the $0.40 level and reaching the lows of December 1, 2023, at $0.3994. Cardano quickly rebounded from this point but continues to trade below $0.50.
During this downtrend, a well-known market analyst named illuminati_KO27 released a TradingView analysis suggesting that ADA might be following a pattern that could lead to a bullish breakthrough. He supported his claims with historical data.
According to the analysis, Cardano is currently trading within the same five-wave Elliott Wave structure that occurred from 2020 to 2021 and resulted in a rally to an all-time high of $3.31. The Elliott Wave pattern started in March 2020, when ADA was priced at $0.04.
The first wave saw Cardano rise to $0.14 in August 2020 before dropping to $0.08 in the second wave. Cardano recovered from this decline and surged to $2.47 in May 2021 when the third wave was completed. The fourth wave experienced a slight decline before ADA reached $3.1 in September 2021 during the fifth wave.
The latest analysis indicates that Cardano is currently following this Elliott Wave structure. It has completed the first wave, rising from $0.24 in October 2023 to $0.81 on March 14. ADA is now in the second wave, which is characterized by the recent downtrend that caused it to drop to $0.3994.
Once this downtrend ends with the completion of the second wave, the analyst expects the third wave to push Cardano to the $3.4 territory, which aligns with the Fibonacci 1.618 level. Data suggests that during the fourth wave, ADA could experience a correction below $2 before soaring to the $6 price when the fifth wave is completed.
Currently, Cardano is trading at $0.4729, showing a 6% increase since yesterday. It is looking to surpass the $0.4969 resistance level in order to reach $0.50. From its current position, ADA would need to increase by 1,168% to reach the projected $6 price.
Despite the ambitious $6 price target, some market analysts predict even higher levels. For example, Ali Martinez believes that ADA has the potential to reach $9 in the future. A Cardano proponent named Chris presented two possible scenarios this month that could see Cardano reaching $7.7 or $9.7.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may reflect the author’s personal opinions and do not necessarily represent the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
