Elliot Wave Predicts Cardano Price May Surge to $2

Cardano price has consolidated this year, but numerous technical patterns point to a potential rebound. ADA is now in the fourth Elliot wave phase, has formed a triple-bottom and a bullish pennant. Additionally, there are signs that developers are embracing the network. 

Cardano Price Could be Boosted By Developer Activity

A potential catalyst for the Cardano price is that the network is seeing more developers. Santiment data shows that Cardano had the third-most development activity in the 30 days after Internet Computer and Hedera Hashgraph. 

This trend is also evident on DeFi Llama, where developers have made almost 2,000 commits this month, a big increase from the 709 they made in December. This month’s commits are the highest since August last year. Core developers have also jumped to 40, the highest point in almost 3 months.

The rising developer activity is a sign that Cardano is starting to regain traction, which may help to support its price over time.

ADA Price Technicals: Elliot Wave, Triple Bottom, Bullish Pennant

Cardano has some of the best technicals on the weekly chart. First, the coin formed a triple-bottom chart pattern around the $0.215 level. It failed to drop below that level in the last three years. Its neckline was at $0.810, its highest swing in March 2024. Cardano moved above that level in November last year and then retested it, a popular continuation sign.

Second, Cardano price has also embarked on an impulse wave of the Elliot Wave pattern. The first phase ended at $1.327, which coincided with the 38.2% Fibonacci Retracement level. It is now in the second wave, which will be followed by the third one, which is usually the longest. The third phase could push it to $2, which coincides with the 61.8% retracement point. 

Third, the ongoing consolidation is part of Cardano’s bullish pennant pattern. In technical analysis, this pattern comprises a tall vertical line and a symmetrical triangle. A bullish breakout usually happens when the two lines of the triangle nears their confluence.

Further, the Wyckoff Theory suggests that Cardano may be about to enter the markup phase, where demand outstrips supply. It has remained in a consolidation or accumulation phase in the last two years, meaning that the markup phase could be steep.

ADA Coin Price Target

The medium-term Cardano price target is the 61.8% retracement level at $2. This price coincides with the potential ending of the third wave of the Elliot Wave. A drop below the lower side of the pennant pattern at $0.810 will invalidate the bullish ADA price forecast.

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crispus

Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.