- Master Ananda sees Cardano’s recent 60% drop as an opportunity for revival, with a higher low signaling potential for growth.
- Cardano’s price correction after reaching an all-time high of $0.30 is nearing its end, presenting a chance for investors to enter.
- Elliott Wave analysis predicts Cardano’s next phase will be a strong bullish Wave 3, likely pushing the price well past $1.32 in the future.
Cardano (ADA) has corrected more than 60%, Master Ananda remains confident that the cryptocurrency has the potential for a revival. The drop was significant, he noted in a post on X, but the higher low that was created during the correction makes the analyst believe that Cardano is primed for another growth cycle.
Cardano’s Price Consolidation Phase
Cardano price hit an All Time High of $0.30 on December 3rd 2024 and are currently consolidating after a significant pullback. However, the analyst views this correction as a unique opportunity for those who have missed out on the recent rally. The majority of the correction appears over, and the market is likely about to enter a brief consolidation before moving higher, he explained.
The correction wick low of ADA did briefly breach the 0.786 Fibonacci retracement level, but closed above the more favorable 0.618 retracement. This is a positive sign, suggesting that price is holding above critical support. As a result, ADA is poised for a strong bullish surge, as suggested by such technical indicators.
Ananda resorted to the Elliott Wave theory, which he employed to interpret the price movements. He further noted that the current correction is taking place in a classic ABC pattern, in which Wave 2 is to a larger degree. This follows Wave 1, a five-wave upward move, and is preceded by an impulse towards the upside in a five-wave pattern.
Long-Term Price Targets
Analysis further shows that Cardano will start a new bullish phase (Wave 3) that follows the ABC correction. It’s expected to be the strongest wave of the entire Elliott Wave sequence, which tends to result in stargazer price increase. Then ADA will correct in Wave 4 and pump one last time to see Wave 5.
Cardano (ADA) will go above its all-time high of $1.32 in the long run and possibly cross the $8 mark if the bullish market continues. The chart displays short-term price targets, providing traders with useful insights for their next steps. At press time, ADA is trading at $0.7564, up 0.29% in the last 24 hours.
Source: TradingView
Despite Cardano’s recent correction rattling some investors, analysis indicate a more favorable outlook. As such, there is ample reason to be optimistic about a significant rebound for ADA, as technical analysis and Elliott Wave theory is suggesting – a very exciting time for investors and traders.