Cardano (ADA) has been on a downward trend in recent weeks, completing a five-wave drop on the one-hour timeframe. The price has experienced a relief rally, but it was rejected at the 200 EMA and is now below the 50 EMA. This indicates that the bears are still in control and that further downside is likely.
However, there is a fair value gap between the current price and the 200 EMA, which suggests that a bounce is possible before the next leg down. The analyst expects ADA to continue upward as a wave 2 in a diagonal pattern, but the price may not go higher than $26.07.
On the daily timeframe, ADA is heading towards a fifth wave target between $21.45 to $22.82. A relief rally is expected after this bearish move. On the weekly timeframe, ADA is seen in a zigzag C-wave, potentially landing between $15.21 to $18.11.
The analyst remains bullish on Cardano long-term, citing its strong fundamentals and ecosystem growth. However, the short-term outlook is bearish and the price may need to test lower levels before resuming its uptrend.
Key Resistance Levels to Watch
The key resistance levels to watch for ADA in the short term are the 200 EMA, $26.07, and $30.00. If the price can break above these levels, it could signal a trend reversal. However, if the price fails to break above these levels, it could continue to decline towards the $15.00 level.
The short-term outlook for Cardano is bearish, but the long-term outlook is bullish. The price may need to test lower levels before resuming its uptrend. Key resistance levels to watch for are the 200 EMA, $26.07, and $30.00.
Here are some additional factors to consider:
- The overall cryptocurrency market is bearish, which is weighing on the price of ADA.
- There are some concerns about the development roadmap for Cardano.
- However, the project has a strong team and a committed community, which are positive factors.
Overall, the outlook for Cardano is bullish in the long term. However, the short-term outlook is bearish and the price may need to test lower levels before resuming its uptrend.