Cardano Price Analysis: Bearish Clouds Hover ADA Price Rally, May Plunge Back Below $0.3 Soon
Cardano has been gaining immense attention recently due to its rapidly growing network and robust fundamentals. Although the price trend has been more or less stagnant, it has now amplified its trend possessing its potential to achieve $0.5 in the next couple of weeks. However, as every action has an impulsive reaction, the rally may also attract the bears, who may slash the price harder in the coming days.
Elliott wave is an analysis to know the long-term price trend patterns considering the change in the sentiments of the market participants. It identifies the impulse wave setups along with the corrective wave. The ADA price trend is flashing the possibility of trending within an Elliott wave pattern which suggests that a major correction could be largely incoming.
The last cycle ended lower during the last few days of 2022 ignited a notable upswing ahead. The first wave (WAVE 1) ended at $0.281 and the pullback in WAVE 2 ended at 0.272. Further, the crypto extended higher in WAVE 3 towards $0.37 and woefully dipped in WAVE 4 which ended at $0.325. The final leg ended WAVE 5 at $0.414 which accomplished WAVE 1.
Later, a similar wave pattern was formed starting down the peak, the WAVE 2 pullback is in progress that had reached $0.38. After a rebound, WAVE 3 is expected to end at $0.407 followed by a lower price action with WAVE 4 ending at $0.403. The final WAVE is believed to extend lower to $0.38.
Here, the bulls are believed to hold the price very strong withstanding bearish actions. In case of negative price action, the price may tend to drop heavily below $0.3. Else, if the bullish Wave continues, a notable upswing may lead to a notable rise beyond $0.41 to reclaim the positions close to $0.5 in the coming days.