$ 96,278.6
BTC
0.48 %
$ 2,696.59
ETH
3.65 %
$ 0.7741
ADA
2.00 %
$ 705.37
BNB
11.76 %
$ 194.25
SOL
0.28 %
Sujit Kumar
Dec 18, 2024

Cardano (ADA) Elliott Wave Analysis: Key Levels and Bullish Targets

Elliott Wave Analysis
Cardano’s (ADA) daily chart reveals a parabolic rally in Wave 3, peaking at $1.31 near the 1.616 Fibonacci extension. Following this sharp rise, momentum has slowed, forming a descending wedge that signals a Wave 4 corrective pullback.

Key support levels are at $1.01-$0.90, aligning with Fibonacci retracement zones. If the correction deepens, ADA could test the 0.786 Fib level at $0.78, a strong potential buy zone. The Relative Strength Index (RSI) is trending downward, confirming reduced momentum and the likelihood of continued consolidation.

Hourly Analysis: ABC Correction in Wave 4

On the hourly chart, ADA is forming an ABC corrective pattern within Wave 4, following the $1.31 high of Wave 3. The price is moving within a descending channel, testing key Fibonacci support levels, suggesting the correction may soon end.

Crucial support zones include $1.01 (0.236 Fib), $0.94 (0.382), and $0.83 (0.5 Fib retracement). A deeper correction could push the price toward the 0.618 retracement at $0.70, where buying pressure is expected to intensify.

Bullish Outlook: Targets for Wave 5

For bullish continuation, ADA must break above $1.31, signaling the start of Wave 5. Fibonacci extensions place potential targets at $1.25 (1.618), $1.47 (2.0), and $1.62 (2.272). However, if support at $0.83 fails, a steeper correction could follow, delaying the upward trend.

Stay alert to ADA’s price action as it approaches critical levels, setting the stage for its next big move.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Cardano (ADA) Elliott Wave Analysis: Key Levels and Bullish Targets
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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