Cardano has recovered from its April lows and continues to maintain strong momentum above $0.45. This generated expectations that the altcoin will hold a rally from here. However, not everyone shares this sentiment as one crypto analyst expects the price to drop further from here.
Cardano will fall below $0.45
In the last video on his YouTube channel that revolved around Cardano’s future trajectory, crypto analyst, ‘More Crypto Online’, revealed why the ADA the price is poised for further decline. The analyst highlighted that the altcoin is currently in its 3-wave corrective recovery.
Now the Elliot Wave Theory what the crypto analyst refers to consists of five waves. Of the five, three are bullish and two are bearish. Bullish waves involve 1, 3 and 5, with 2 and 4 being bearish waves.
If the analyst is correct and the Cardano Price it has only completed three waves so far, which means that the fourth wave, which is a bearish wave, has not yet been established. As a result, the crypto analyst believes that Cardano’s price will fall further as it enters the fourth wave.
He further highlighted that the altcoin’s price fell below the $0.48 support, which was an important level for it. This, combined with the fact that it has not yet entered the fourth wave, convinced the analyst that the fall in prices is far from over.
As for where ADA price could end up in this fourth wave, the crypto analyst believes it will reach $0.42 before recovering again. However, the good news is that once the fourth wave is complete, it gives way to the beginning of the fifth wave, which is the highest of all the waves and can see the ADA barrel price above US$1.
ADA Metrics Still Bullish
Despite the bearish outlook presented by the crypto analyst, Cardano’s key metrics continue to show bullish divergence. For example, the daily trading volume of the altcoin rose nearly 17% in the last day to surpass $286 million, data of CoinMarketCap programs.
That drastic increase in daily trading volume suggests a return of interest in the altcoin and this could quickly translate into an uptrend, especially in the short term. Furthermore, the fact that the price is rising at the moment suggests that the majority of transactions resulting from this renewed interest are from buyers rather than sellers. This suggests that the price will continue to increase if this demand is sustained.
At the time of writing, ADA is still firmly above $0.45 with an increase of 1.78% in the last day.
ADA price still above $0.45 | Source: ADAUSDT on Tradingview.com
Featured image from Cardano Feed, chart from Tradingview.com
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