Cardano (ADA) seems to be forming a 5-wave advance from the August 31 lows, latest Elliott Wave-based technical analysis finds. The pullback from $0.24 has kept Cardano bulls on guard as geopolitics-infused sideways market movements rattle the fragile Cardano price setup.
Elliott Waves Decipher Cardano’s Long-Run Potential
According to More Crypto Online, the initial rejection at the $0.228–$0.241 resistance level can flip into support if the support bubble at $0.197–$0.214 holds. The theory now hints at the next wave being the most drastic one in terms of length: the Wave 3 provides the strongest pull out of the first, third & fifth waves.
Here’s the leading scenario provided by the seasoned technical chart analyst: by the Elliott Waves, Cardano’s Wave 3 could take the OG altcoin towards $0.28. Conversely, there’s a chance of a downward slope to roughly $0.157–$0.188, an area where buyers tend to step in.
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The 1-2 bullish setup in-tact highly depends on whether Cardano’s (ADA) price can smoothly retest that resistance cluster between $0.22 to $0.24. Based on the Elliott Wave theory, the third wave tends to be the hottest in terms of price movement before a pullback on the fourth wave.
ADA Derivatives & BBP Metrics Tell a Different Story
Other on-chain metrics looked fragile. Cardano’s (ADA) SuperTrend price hovered fractures of a cent below the actual price of $0.21. The Smoothed Moving Average (SMA) still floated slightly higher at $0.2144, while big-time investors were mixed in sentiment about calling the bottom.
Considering retail sentiment, the Bull Bear Power (BBP) has shifted toward bearish, meaning more coin distribution is happening at the red zone. A similar market mood in mid-August saw Cardano’s bulls fixating themselves around the $0.17 support before the 7-day spike to $0.24.
Reaching further, Cardano’s (ADA) bulls might have a hard time attacking the quarterly highs of $0.28 without stronger conviction from the leveraged markets. Daily Derivatives data now hints at Cardano (ADA) racking up $650 million in 24 hours on Futures, but long Cardano price plays are the ones getting liquidated due to excessive leverage.
Judging the real-time CoinGlass data on Cardano’s price, the altcoin whipped up 15% gains in daily trading volume, but the long liquidations accounted for $2.42 million out of $2.51 million. The overall long-versus-short futures ratio is now also slightly angled towards the short-sellers, but Cardano’s bulls on Binance & OKX are aggressively placing upward plays.
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