Cardano has shown signs of recovery from its April lows, with the price maintaining a strong momentum above $0.45. While some analysts are optimistic about a rally in the near future, there are dissenting voices predicting a further decline in price. One such crypto analyst, ‘More Crypto Online’, has recently pointed out that Cardano is currently in its 3-wave corrective rally according to the Elliot Wave Theory. This theory consists of five waves, with three being bullish and two bearish. If the analyst’s interpretation is correct and Cardano has only completed three waves so far, it indicates that a bearish fourth wave is yet to be established.
The analyst suggests that the altcoin’s price could potentially drop to as low as $0.42 before recovering. However, once the fourth wave is completed, it could pave the way for the fifth wave to begin, which is typically the most bullish of all the waves. This bullish wave could potentially see the ADA price surpassing $1. Despite the bearish outlook presented by the analyst, certain key metrics for Cardano continue to show bullish signs of divergence.
While the price analysis points towards a potential decline, other major Cardano metrics paint a different picture. For instance, the daily trading volume of the altcoin has risen by almost 17% in the last day, crossing $286 million according to data from CoinMarketCap. This significant increase in trading volume indicates a renewed interest in the altcoin, which could potentially lead to a bullish trend in the short term.
Moreover, the fact that the price is currently on the rise suggests that the majority of transactions are likely from buyers rather than sellers. This indicates a strong demand for ADA at the moment, which could continue to drive the price upwards if sustained. As of now, ADA is trading above $0.45, with a 1.78% increase in the last day, signaling ongoing investor interest in the altcoin.
While the future trajectory of Cardano’s price remains uncertain, it is important for investors to conduct their own research before making any investment decisions. The information provided in this article is for educational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries inherent risks, and it is crucial to make informed decisions based on thorough analysis and due diligence.
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