Cardano Price Analysis: Here’s Why ADA Price Has a Potential of Riding the Bullish Waves
On Wednesday, the crypto market saw a decline in top tokens, with Bitcoin and some significant altcoins leading the way due to the easing of the banking crisis in the US. Traders are closely watching US inflation data and the ongoing selling pressure in the crypto market has resulted in a bearish outlook for the Cardano price.
According to the YouTube channel More Crypto Online, Cardano has the potential to experience a bullish scenario if it can maintain support at its current levels. This would prevent the cryptocurrency from entering into a new bear market. However, the analyst notes that there are two potential support areas that could lead to different bullish scenarios.
The first support level is at $0.33.3, while the second scenario involves a support level of $0.27.6. Despite the different support levels, the analyst believes that both scenarios are currently bullish.
The market has been consolidating within a triangle pattern, which was completed on May 6th. Since then, the market has been in a downward trend, with the analyst noting a possible three-wave move down or a five-wave move down.
He also explains two bullish scenarios, with the market either holding at a support level of $0.33.3 or morphing into another scenario with support going down to $0.27. The recent triangle break for ADA suggests a potentially bearish scenario. The critical level to watch is at around $0.36.6. If ADA stays below this level, the focus is on the downside
According to a recent report by IntoTheBlock, most Cardano investors are currently facing losses. The data analytics firm found that at least 80% of ADA holders are “out of the money,” indicating that they are holding the cryptocurrency at a loss.
