As ALGO, this will be also the first time analysis on Cardano ADA. Like most of the crypto assets, ADA finalized the 5 Elliott Wave Structure in weekly charts. The following pattern is called ABC or ABCDE Wave for correction. ADA seems that it finalized the A wave, the first leg of corrective action. After ending the uptrend in the middle of 2021, (following the Blue Wave Pattern) ADA started its A wave since then and trying to settle around $0.30. The Fibonacci level interprets that there might be possible wicks to the $0.172 area which is supported by the Fibonacci level. We can expect a reversal of B Wave towards, $2 by the end of 2022 and Q1 2023. The critical level is around $2 and final correction Wave C can bring ADA towards the $0.172 level as well. Below technical analysis shows that the correction action in ADA is expected to be ended by mid-2023. We need to see higher price action above $3.16 in order to strongly say that the up-trend is resumable.
Weekly Chart of Cardano, ADA
Daily trend based on wave trend indicator shows that ADA can double-tap between $0.3 - $0.17 as the final move for A Corrective Wave. The weekly wave trend is also in the oversold area like daily and supports this double-tap. Well, the monthly wave trend has enough data to produce an indication unlikely to ALGO. Monthly is currently bearish and trumps the daily as well as weekly wave trends. However, the expectation of B Wave towards up is possible with the final corrective action of C Wave. By completing the ABC wave we can talk about the further uptrend.
The uptrend of the current structure for ADA is expected to show itself above the $4.11 level. ADA has the potential then to proceed to its next target at $30 levels which is the Fibonacci Level of 361.80%.
All of the RSI levels for daily, and weekly are currently under 50% however the monthly figures are above supporting the above ABC correction pattern.
As always, Important Note: None of the targets represented here is financial advice. Do your research in due diligence and take responsibility for your actions when buying or selling an instrument.