A crypto analyst from the More Crypto Online YouTube channel said Cardano is stuck in a trading range and could continue moving sideways.
In a Dec. 26 video, the analyst projected that Cardano (ADA) token will likely continue trading sideways in the short term but could be gearing up for a larger price move.
“ADA continues to be in this sideways range, hasn’t broken the structure,” the analyst said, referring to the trading range ADA has been stuck in for the past several weeks under $0.65.
The analyst believes ADA is forming either an Elliott Wave triangle pattern or a more complex corrective pattern on its price chart. Both patterns suggest ADA is in the late stages of a correction from its November highs and could soon break out into a new trend, at this time unknown to be positive or negative.
“Normally, they break out like two-thirds into a triangle. Then you normally get a breakout,” the analyst explained, noting ADA could be close to resolving its current triangular consolidation.
However, the analyst acknowledged uncertainty around which direction ADA will break out. An upside breakout above $0.65 would indicate the triangle is complete and could foreshadow further gains, possibly up to $1. But a downside break below the support would negate the triangle and open the door for declines, the analyst said.
The analyst believes its price action will likely remain directionless until ADA resolves the triangle pattern by breaking above or below key levels.
Anything that happens between here and the support is really just noise because the fifth wave is still expected.
More Crypto Online
Still, the analyst maintains a longer-term bullish outlook, expecting an eventual fifth-wave rally after the current corrective period runs its course. But he says traders need to watch critical chart levels closely in the days ahead for the next definitive signal on ADA’s major trend.