Elliott Wave Insights Hints Cardano Price Wave 3 Breakout to $40

by

As a seasoned analyst with over two decades of experience in financial markets, I find myself intrigued by the bullish predictions for Cardano (ADA) price, especially given its recent downturn. While the market may seem bearish at the moment, my personal life experiences have taught me that the crypto world can be unpredictable and volatile.

The price of Cardano experienced a significant downward shift over the past two days, entering a technical bear market. After reaching an impressive high of $0.6897 on Monday, the price has dropped by 23%, currently trading at its lowest level since November 10. Despite this decline, some analysts remain optimistic, with one expert forecasting a potential increase of 7400% to reach $40, using Elliot Wave analysis as a basis for their prediction.

Crypto Analyst Delivers A Huge Cardano Price Forecast

Gert van Lagen, who’s well-known for analyzing cryptos with an audience of over 104,000 on X, thinks that the price of Cardano (ADA) could rise significantly in the future. In his primary scenario, he predicts that ADA might surge to $10, which represents a potential increase of 1,786% from its current value.

In simpler terms, he predicts that the price of Cardano’s token could potentially reach $40, a 7400% increase from its November 13th value. This forecast is based on a distinctive pattern called the Elliot Wave, which suggests that assets progress through five waves, with the third wave being the longest and typically showing the most significant price movement.

As I analyze the current state of ADA, I foresee a potential surge towards $10. At present, it appears we’re in the midst of the second corrective wave. Historically, this phase is often preceded by a third strong, bullish phase.

ADA Price Technicals Point To More Gains to $1

Cardano’s move to a bear market happened as investors questioned some of the recent bull case. In a statement, Ben Armstrong, popularly known as BitBoy, raised concerns on whether Charles Hoskinson would become a crypto advisor as was widely speculated. He also questioned the falling TVL and waning user engagement.

In simpler terms, the technical analysis suggests that Cardano might see further gains despite a temporary drop. This is due to an upcoming “golden cross” on the daily chart, where the 200-day and 50-day Exponential Moving Averages (EMA) are getting close to intersecting. These averages are currently near a significant support-resistance level defined by the Murray Math Lines.

Currently, the Market Value to Realized Value (MVRV) indicator – which helps evaluate an asset’s worth and investor activity – is trending upward and has reached its highest level since March this year. Although a reading above 3 typically suggests overvaluation, it might also indicate a buildup of momentum.

The price of ADA has approached the 50% Fibonacci Retracement level, currently at approximately $0.5424. This suggests that there might be a potential drop in the token’s value, taking it down to the 38.2% retracement point around $0.48. Following this dip, there could be a rebound if the coin manages to surpass its weekly high at $0.6900. If it does so, it could lead to a significant increase towards the psychological price point of $1, which represents an 87% growth.

If Cardano’s coin falls below the significant support-resistance (S&R) turning point at approximately $0.40, its bullish prediction may no longer hold true. In this case, a decline might ensue, causing the coin to revisit the support it has been finding difficult to break beneath since August – around $0.3054.

Read More

2024-11-13 15:00