Analyst predicts Cardano will maintain sideways trading pattern prior to significant market shift
According to a crypto analyst from the More Crypto Online YouTube channel, Cardano (ADA) is currently experiencing a period of sideways trading and may continue in this trend. In a video released on December 26, the analyst predicts that ADA could be preparing for a significant price movement in the near future.
The analyst notes that ADA has been stuck in a sideways range below $0.65 for several weeks and has not yet broken out of this structure. Based on the price chart, the analyst suggests that ADA is forming either an Elliott Wave triangle pattern or a more complex corrective pattern. Both patterns indicate that ADA is in the final stages of correcting from its November highs and may soon enter a new trend, although it is unclear whether this trend will be positive or negative.
Typically, triangle patterns break out around two-thirds of the way through, leading to a breakout. The analyst believes that ADA may be nearing the end of its current triangular consolidation and could soon experience a breakout. However, the direction of the breakout remains uncertain. A breakout above $0.65 would indicate that the triangle is complete and could potentially lead to further gains, possibly reaching $1. On the other hand, a break below the support would negate the triangle and could result in declines.
The analyst suggests that ADA’s price action will likely remain without a clear direction until the triangle pattern is resolved by a breakout above or below key levels. Despite this, the analyst maintains a bullish outlook in the long term and expects a fifth-wave rally after the current corrective period. Traders are advised to closely monitor critical chart levels in the coming days for a definitive signal on ADA’s major trend.
Read More:
Analyst predicts a decline in Cardano price
Follow Us on Google News
