Is A Cardano Dip To $0.29 Likely?

Analysts from More Crypto Online suggest that Cardano (ADA) could dip to $0.29 over the current cycle. 

According to the analyst, its price movement may be at a critical juncture. They point out that the Elliott Wave theory indicates a potential for bullish and bearish outcomes based on ADA’s current pricing trends and historical performance patterns. The analyst elaborates that ADA appears to have completed a five-wave advance from the previous year’s lows. However, he warns that the subsequent drop below 29 cents signals a possible bearish trend. This recent downturn contrasts with an earlier bullish scenario where ADA’s rally hit the 200% extension, a rare feat for a second wave, hinting at continued upward momentum. This aligns with calls from Crypto Capital Ventures, who suggest that ADA is about to explode. Crypto Mark also predicts that the altcoin could reach as high as $828.

The analyst also points out a “flat structure,” a bullish indicator, but prefers a bullish interpretation, relying on ADA’s past rally behavior. His optimism is tempered by current resistance levels that the ADA must overcome to confirm a bullish continuation. Specifically, the analyst pointed out that ADA faces immediate resistance at 42 cents, 36 cents, and 29 cents, with a critical caution that a drop below 29 cents could pivot the outlook to bearish.

The analyst suggests that while Cardano might be positioned for an upward fifth wave, failure to rise above 50 cents could lead to another price dip. He cites that breaking the 62.3 cents mark would considerably diminish the chances of a lower low. The analyst underscores that until ADA breaks above these resistance levels, the potential for “one more low” remains viable, with possible support levels at 20 cents to 36 cents if the price retreats further.

Cardano Market Review: How Is ADA Looking Today?

Based on stats from CoinMarketCap, Cardano was trading at $0.481 as of 2:30 p.m., representing a 5.6% jump in valuation over the last 24 hours. The Cardano price is hovering around the Ichimoku cloud, which suggests potential indecision in the market. If the price stays above the cloud, it’s generally considered bullish, and a sustained move below could be bearish. 

2-hour ADA/USD Chart | Source: TradingView

Conversely, the Average Directional Index (ADX) line is 36.51, indicating a relatively strong trend. However, its sharp southern trajectory could indicate a weakening trend. The volume oscillator shows a decrease of 21.52%. This means the trading volume is decreasing, which might suggest less interest in the current price level or consolidation phase.