One analyst recently provided an update on the price outlook for Cardano (ADA) token, noting upward momentum but expressing skepticism about a sustained uptrend. Although ADA showed a recent “green candle” on the price chart, the analyst cautions that this alone does not indicate the start of a significant upward movement. There is a lack of evidence in recent green candles to support such a conclusion.
The analyst presents two potential short-term scenarios for ADA’s price movement. In the first scenario, ADA could form an ABC corrective pattern after a preceding downtrend, resulting in a bounce to around $0.72 before resuming the overall bearish trend. The second scenario suggests a more complex WXY pattern playing out, leading to a drop in price from current levels instead of a rally to $0.72. However, the analyst maintains that both scenarios do not change the larger-degree corrective fourth wave perspective after the previous bull run.
Despite the short-term scenarios, the analyst’s view remains bearish, expecting lower prices in the medium term. The analyst suggests that ADA could potentially drop to the $0.50 or $0.39 level. To confirm the start of another downward leg, traders should closely monitor the key support level of 54.3 to 54.4 cents. A decisive break below this level would signify a significant downturn. However, until then, the short-term trend may display upward movement but remain volatile due to the unclear price structures.
Considering Overall Crypto Market Weakness
It is important to consider that Cardano’s price action may be influenced by the broader weakness seen in the crypto market, particularly Bitcoin. Another analyst, Austin Hilton, previously suggested that Cardano’s price movement is tracking the overall market weakness. Therefore, it’s crucial to observe the market as a whole when analyzing and predicting ADA’s price trends.
The skeptical tone of the analyst’s analysis persists throughout the report. While acknowledging upward momentum in ADA’s price, the lack of evidence in recent green candles casts doubt on the sustainability of an uptrend. The analyst cautions against premature optimism, emphasizing the need for further confirmation and evidence before confidently predicting a significant upward movement.
Despite some recent upward momentum, the analyst remains skeptical about the sustainability of an uptrend in Cardano’s price. The lack of evidence in recent green candles and the analyst’s overall bearish outlook suggest potential further downward movement in the medium term. Traders should closely monitor the key support level and pay attention to the broader weakness in the crypto market. Only with more confirmatory evidence will a sustained uptrend in ADA’s price be more likely.
