Cryptocurrency analyst behind the Austin Hilton YouTube channel recently shared a bearish near-term outlook for Cardano (ADA) token. This article will explore the reasons behind the analyst’s predictions and the potential impact on the market.
The analyst’s analysis heavily relies on the Elliott Wave Analysis, which is a technical analysis method that predicts future price movements by identifying repetitive wave patterns in market trends. According to their analysis, Cardano is currently undergoing wave C of a larger corrective pattern, following an incomplete wave B top.
The analyst believes that Cardano’s price action is closely aligned with the overall weakness in the crypto market, particularly Bitcoin. They suggest that the local top for ADA may have already been reached, but a break below the $0.54 level is necessary to confirm the start of wave C.
If the bearish scenario plays out, the analyst highlights the $0.507 level as the initial support for Cardano. This level aligns with the 23.6% Fibonacci retracement of the recent advance. Additionally, they mention the next area of expected support at the $0.438 level, which corresponds to the 38.2% Fibonacci retracement.
Looking ahead, the analyst envisions a prolonged and complex fourth wave for Cardano, which could last for several weeks. They propose that this wave may develop into a triangle consolidation or other complex pattern before an eventual fifth wave rally resumes.
In order to maintain upside hopes in the long term, the analyst urges that the $0.345 level must hold as support. If this level is breached, it could potentially invalidate the bullish outlook for Cardano and indicate further downside.
The cryptocurrency analyst behind the Austin Hilton YouTube channel predicts a bearish near-term outlook for Cardano (ADA) token based on their Elliott Wave Analysis. They suggest that Cardano is currently undergoing wave C of a larger corrective pattern and is closely tracking the overall market weakness seen in Bitcoin. However, the analyst notes that a break below the $0.54 level is needed to confirm the start of wave C. It remains to be seen how Cardano will perform in the coming weeks and whether the expected support levels will hold. Investors and traders should closely monitor the price action of Cardano to make informed decisions.