This analyst believes that Cardano’s price action is tracking the overall crypto market weakness seen in Bitcoin.
An analyst behind the Austin Hilton YouTube channel, which covers cryptocurrency price analysis and predictions, outlined a bearish near-term outlook for Cardano (ADA) token in a video update published Dec. 15. The video is largely focused on what is known an Elliot Wave analysis. Elliott Wave Analysis in cryptocurrency is a technical analysis method that predicts future price movements by identifying repetitive wave patterns in market trends.
The analyst believes Cardano is currently unfolding wave C of a larger corrective pattern, following an incomplete wave B top. He notes that ADA is closely tracking overall market weakness, as Bitcoin has also started to fulfill a bearish scenario.
While not fully confirmed yet, the analyst suggests ADA’s local top is likely in place already.
However, he notes a break below the $0.54 level is still needed to solidify the start of wave C. Initial support is seen around $0.507, aligning with the 23.6% Fibonacci retracement level of the recent advance. Below, the analyst highlights the 38.2% level at $0.438 as the next area of expected support.
Looking ahead, a prolonged and complex fourth wave is envisioned, possibly lasting several weeks. The analyst believes this wave could develop into a triangle consolidation or other complex pattern before an eventual fifth wave rally resumes. However, he cautions that the $0.345 level must hold to keep upside hopes intact long-term.
Source: https://crypto.news/cardano-is-becoming-bearish-analyst-explains/