Cardano (ADA), one of the top cryptocurrencies in the market, is facing a bearish near-term outlook according to an analyst behind the Austin Hilton YouTube channel. In a recent video update, the analyst outlined the potential for Cardano’s price to decline based on an Elliot Wave analysis. The market weakness seen in Bitcoin is believed to be influencing Cardano’s price action.
The Elliot Wave analysis is a technical analysis method that predicts future price movements by identifying repetitive wave patterns in market trends. Based on this analysis, the analyst suggests that Cardano is currently in the process of unfolding wave C of a larger corrective pattern. This follows an incomplete wave B top, indicating a potential decline in price.
Cardano’s price is closely tracking the overall market weakness, particularly that of Bitcoin. The analyst notes that while it is not fully confirmed yet, ADA’s local top is likely already in place. However, for wave C to solidify, a break below the $0.54 level is needed. Initial support is expected around $0.507, which aligns with the 23.6% Fibonacci retracement level of the recent advance. Further support is identified at the 38.2% level at $0.438.
Looking ahead, the analyst envisions a prolonged and complex fourth wave for Cardano, possibly lasting several weeks. This wave could potentially develop into a triangle consolidation or other complex pattern before an eventual fifth wave rally resumes. However, the analyst cautions that the $0.345 level must hold in order to maintain upside hopes intact in the long-term.
The current price analysis of Cardano (ADA) suggests a bearish outlook in the near-term. The Elliot Wave analysis indicates a corrective pattern unfolding, with wave C in progress. Cardano’s price is closely tied to the overall market weakness, particularly Bitcoin. While the local top for ADA may already be in place, a break below certain price levels is needed to confirm the start of wave C. Looking ahead, a complex fourth wave is expected, potentially lasting several weeks. The $0.345 level is crucial in maintaining long-term upside hopes for Cardano. As always, it is important for investors to conduct their own research and analysis before making any investment decisions in the cryptocurrency market.
