Cardano (ADA) price prediction by market analyst Alikze indicates that the cryptocurrency is likely to rally as it trades within an ascending channel. This outlook is in line with the Elliott Wave Theory.
It suggests that Cardano could be in Wave 3, which is usually characterized by a strong upward thrust. Although ADA has been through some volatility in the market, it is currently in the process of bouncing back from the correction phase raising questions on whether it can pass through the $0.55 level.
Cardano’s Elliott Wave Structure
In Alikze’s technical analysis, ADA is recognized to be in an Elliott Wave structure. It is going through an upward trend. The Elliott Wave Theory identifies price movements in the form of five wave patterns during the bull market.
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As per Alikze, Cardano is now entering into Wave 3. This is indicative of the strongest bullish trend as per historical precedent.
According to this analysis, the price of Cardano is expected to find resistance between $0.51 to $0.55. As of now, ADA is trading at $0.366 which is an increase of 2% within the day.
The price action is in line with a reaction off the lower edge of the ascending channel. This suggests that if ADA holds above this level it may be able to continue its upward move.
Technical Indicators Support Mild Bullish Momentum
Several technical signs point to the possibility of Cardano keeping on rising in the future. The Relative Strength Index (RSI) is at 54.66, indicating a modest rise in the bulls’ power.
This RSI is positioned above the midline of 50, which signifies that there is upward pressure to buy ADA. However, it is still below 70, which means ADA is not overbought.
This opens the door for even more price surge. The Moving Average Convergence Divergence (MACD) also shows signs of a bullish trend.
The MACD line has crossed the signal line in the upward direction which is a buy signal. Both lines are near the zero level. So the momentum is still weak and needs more buying pressure to move the price up.
Nevertheless, the current ADA price is located below essential moving averages. This points to bearish pressure in the short and long run, despite the positive signals from RSI and MACD.
The 50-day SMA gives a short-term bearish signal with ADA price struggling to break above this level. In the short term, ADA may encounter resistance levels that may pose a threat to its upward trend.
The first major pullback is observed near the 50-day SMA that is approximately $0.403. If ADA is to break through here, the next targets are at $0.427 and $0.51.
On the support side, ADA’s immediate support is at $0.349, with stronger support around $0.318. That corresponds to recent lows.
Long-Term Outlook: Cardano’s Growth and Development
In a recent Cardano community event held in Buenos Aires, Cardano founder, Charles Hoskinson shared his insights. He was positive about the future of Cardano and said that it could overtake Ethereum in the next ten years. It may even compete with Bitcoin in the long term, he shared.
He mentioned that Cardano’s large research team is working on improving the decentralization and utility of the project. Furthermore, Hoskinson met with Argentina’s president during his time in the country and discussed the country’s relevance to Cardano’s growth plan.
Cardano is looking into creating a hub in Argentina to capitalize on the country’s talent to support the growth of the platform. This strategic move may help open up more upside potential for ADA to break out above its resistance levels.
