A renowned crypto analyst from the More Crypto Online YouTube channel has recently expressed the view that Cardano (ADA) token is presently stuck in a trading range and has the potential to continue moving sideways. Through a video uploaded on December 26, the analyst projected that although ADA may continue its sideways movement in the short term, it could be preparing for a larger price swing in the future.
The analyst highlighted that ADA has remained within a specific trading range below $0.65 for the past few weeks, and this has not been broken yet. Referring to this range, the analyst stated that ADA is currently engaged in the formation of either an Elliott Wave triangle pattern or a more complex corrective pattern on its price chart. These patterns typically indicate that ADA is in the latter stages of a correction from its November highs and may soon experience a breakout into a new trend, which is presently unknown to be positive or negative.
According to the crypto analyst, triangles of this nature typically break out around two-thirds into their formation. Based on this, the analyst explained that ADA is likely close to resolving its current triangular consolidation. However, there is significant uncertainty regarding the direction in which ADA may break out. An upside breakout above $0.65 would signify the completion of the triangle pattern and could potentially indicate further gains, possibly even reaching $1. On the other hand, a downside break below the support would invalidate the triangle pattern and expose ADA to potential declines.
Uncertain Price Action
The analyst suggests that ADA’s price action will potentially remain directionless until the triangle pattern is resolved by breaking above or below key levels. The analyst emphasized that any movements occurring within the range are merely noise and won’t impact the long-term outlook. Ultimately, the analyst maintains a bullish perspective for ADA in the long run and expects a fifth-wave rally once the current corrective period concludes.
The crypto analyst from More Crypto Online believes that Cardano (ADA) is presently trapped in a trading range and predicts the continuation of sideways movement in the short term. While ADA appears to be in the final stages of a correction, uncertainty remains regarding the direction of its future breakout. The analyst maintains a positive outlook for ADA in the long term and anticipates a significant rally once the current corrective period concludes. Traders and investors should closely monitor ADA’s price behavior to identify any potential breakout patterns and adjust their positions accordingly.
