Analyst Alikze has identified an “Upward Wave 3” scenario for Cardano (ADA) as it moves within an ascending channel, suggesting potential bullish momentum despite a recent dip to a 7-day low.
Alikze’s technical analysis indicates that Cardano is recovering from a correction phase, with support in a “green box” area on the weekly chart. He noted that the upward trend may continue if Cardano stabilizes above this zone.
The analyst also noted that the 12-hour chart supports this outlook, showing a positive reaction at the lower boundary of the ascending channel. So far, Cardano has experienced a series of upward movements, each contributing to its progress toward the channel’s midpoint.
Cardano Elliott Wave Structure
The examination points to an Elliott Wave structure marked by three phases (A, B, and C). Wave A represents the initial impulse, while Wave B indicates the correction.
The current path points to Wave C, potentially evolving into Wave 3, known for its aggressive upward momentum. According to Alikze’s projections, Cardano’s price could reach resistance levels between $0.51 and $0.55, representing a possible bullish rally within this wave cycle. At press time, ADA is trading at $0.366, up by 2% today.
Mild Bullish Momentum
Notably, technical indicators suggest ongoing bullish trends, with ADA’s Relative Strength Index (RSI) reading at 54.66—just above the neutral mark of 50. The RSI has surpassed its moving average, which stands at 48.83, indicating an increase in recent buying activity.
Additionally, the RSI remains under 70, suggesting that Cardano is not overbought, potentially allowing room for continued upward momentum.
The Moving Average Convergence Divergence (MACD) supports this positive outlook, as the MACD line has recently crossed above the signal line, indicating a bullish crossover. The histogram has turned slightly green, reflecting increased buying interest.
However, since both MACD lines are close to zero, this momentum is still in its early stages and may require stronger buying pressure to maintain the trend.
Cardano Founder’s Projections
This analysis coincides with bold claims from Cardano’s founder, Charles Hoskinson, who recently spoke at the fourth annual Cardano Community event in Buenos Aires. During his keynote address, he emphasized Cardano’s growth into an 11-figure platform with millions of users and the largest research team dedicated to the network.
Hoskinson expressed confidence that Cardano could surpass Ethereum in the next decade and even outpace Bitcoin in the following ten years.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
