A cryptocurrency analyst on the More Crypto Online YouTube channel said Cardano is stuck in a trading range and could continue to move sideways.
In a video from December 26, the analyst predicted that the Cardano (ADA) token will likely continue trading sideways in the near term, but could be ready for a bigger price move.
“ADA continues to be in this sideways range and has not broken structure,” the analyst said, referring to the trading range in which ADA has remained below $0.65 for the past few weeks.
The analyst believes that ADA is forming an Elliott Wave triangle pattern or a more complex correction pattern on the price chart. Both patterns suggest that ADA is in the latter stages of a correction from its November highs and could soon enter a new trend. At this point, we don’t know if it’s positive or negative.
“Normally, about two-thirds of it is divided into triangles. That usually leads to a breakthrough.” The analyst explained that ADA could come closer to resolving the current triangular integration.
But analysts acknowledged uncertainty about which way the ADA will unfold. An upward breakout above $0.65 would signify the completion of the triangle and could signal a further rise up to $1. However, a break below the support line would nullify the triangle and open the door to a decline, the analyst said.
The analyst believes that price action is likely to remain directionless until ADA breaks above or below a key level and resolves the triangle pattern.
Since the fifth wave is still expected, everything that happens between here and Jiji is really just noise.
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Nonetheless, analysts maintained their long-term bullish outlook, predicting an eventual fifth rally after the current correction period ends. However, he said traders should watch important chart levels closely over the next few days to get the next decisive signal on ADA’s key trend.