Cardano (ADA) has taken the crypto world by storm, soaring to new heights and igniting speculation about its potential future price trajectory. While the recent surge has been remarkable,JB cautions that a correction is likely due to overbought conditions across multiple timeframes.
Breaking Through the Contracting Pattern
Previously, JB had identified a contracting pattern, suggesting a potential breakout. However, the pattern has now been broken, leaving market participants wondering what the next phase of ADA’s price action will hold.
Five-Wave Pattern on the Hourly Chart
JB is now focusing on a five-wave pattern on the hourly chart, with a keen eye on the impulsive and nesting structures. This pattern suggests that ADA could continue its upward momentum, but caution is still advised due to the overall overbought conditions.
Potential Market-Wide Correction
The overbought nature of multiple timeframes (1H, 4H, 8H, 1D, 1W, 1M) suggests that a market-wide correction is likely. This could bring ADA’s price down, potentially testing the 22 C level.
Revisiting the AB and C Structure
On the daily timeframe, ADA is approaching the 46.17 C level, which could impact the previously discussed AB and C structure. Analysts are divided on whether this level will be breached, with some predicting a continuation of the upward trend and others expecting a correction.
Long-Term Positive Sentiment
Despite the anticipated correction, JB maintains a positive outlook for Cardano in the long term. JB believes that the project’s strong fundamentals and growing adoption will drive its price higher in the future.
Attractive Entry Points
JB is confident that opportunities for entry will arise during the correction. JB suggests monitoring the 22 C level and considering buying positions if the price dips below this level.
In conclusion, Cardano’s recent surge has been impressive, but JB warns of an impending correction due to overbought conditions. While this correction could provide attractive entry points, long-term investors remain bullish on ADA’s prospects.