Cardano’s ADA has experienced a significant rally, bursting through the A-wave origin on the daily chart and reaching the 1382 FIB level. This impressive surge has raised questions about the reasons behind ADA’s performance, leading to an exploration of Cardano’s era and predictions for the pump.
Macro-scale analysis suggests that the ongoing move is driven by a combination of factors, including Cardano’s strong fundamentals, growing ecosystem, and upcoming bull market. From a technical perspective, a five-wave structure and explosive wave five are evident, indicating overbought conditions across multiple time frames. A retracement is anticipated, with key levels for support at 48.1 C, 45.4 C, and 43.3 C. This retracement is likely to be followed by a final push to the upside, targeting 54.8 C to 58 C.
However, the macro structure has changed, and potential bearish scenarios include running flat and irregular flat corrections. These scenarios could lead to a retest of previous lows down to 29.53 C or 15.95 C.
On the other hand, an optimistic view for ADA’s future compares its current market situation to the previous bull market. Potential Fibonacci levels and price targets are speculated, with the possibility of ADA reaching $26.33 if mimicking the previous bull run. Targets ranging from $702 to $882 are mentioned, with $536 and $538 considered achievable.
Technical analysis supports these optimistic projections, with targets based on Fibonacci levels and a previous targeting with a lower low. An expected 1,200% push to the upside and a potential of 11,800% for $26 are highlighted.
Overall, JB maintains a bullish position for Cardano ADA, citing positive views on the technology, ecosystem, and advancements. JB anticipates opportunities in the upcoming bull market and expect a retracement followed by a strong upward movement. However, he emphasize that these are personal views and not financial advice. Traders are urged to exercise caution and implement tight stop losses.