Cardano has recently shown signs of recovery from its April lows, with the price maintaining a strong momentum above $0.45. While some investors are optimistic about the altcoin going on a rally from here, not everyone shares the same sentiment. One crypto analyst, known as ‘More Crypto Online’, has expressed his belief that the ADA price is poised for more decline based on his analysis of the current market trends.
The crypto analyst referenced the Elliot Wave Theory in his analysis, which consists of five waves in total. Out of these five waves, three are bullish (1, 3, and 5) and two are bearish (2 and 4). According to the analyst, Cardano is currently in its 3-wave corrective rally, indicating that the fourth wave, a bearish wave, is yet to be established. This prediction suggests that the price of ADA could further break down before any potential recovery.
The analyst highlighted the fact that Cardano’s price had fallen below the $0.48 support level, which is considered a crucial level for the altcoin. This, combined with the impending fourth wave as per the Elliot Wave Theory, has led the analyst to believe that the price crash is far from over. He predicts that the ADA price might drop as low as $0.42 before potentially seeing a recovery.
Despite the bearish outlook provided by the crypto analyst, there are still bullish signs in the Cardano market. Major metrics, such as the daily trading volume, have shown bullish divergence. The daily trading volume of ADA has risen by almost 17% in the last day, crossing $286 million, indicating a return of interest in the altcoin. This renewed interest could lead to a bullish trend, especially in the short term.
At the time of writing, ADA is still trading above $0.45, with a 1.78% increase in the last day. The price movement suggests that the majority of transactions are from buyers rather than sellers, indicating a strong demand for ADA. If this demand continues to be sustained, the price of Cardano could continue to rise in the near future.
While there are conflicting opinions on the future price movement of Cardano, it is essential for investors to conduct their own research and analysis before making any investment decisions. The market trends and technical analysis provide valuable insights, but ultimately, investing in cryptocurrencies carries inherent risks. It is crucial to stay informed and make informed decisions when navigating the volatile cryptocurrency market.