23 August 2024
Crypto analyst @XForceGlobal shared a new video chart analysis focused on Cardano (ADA), a cryptocurrency that many are dismissing as a “dinosaur coin” at the moment. In the analysis, XForceGlobal (@XForceGlobal) provided an in-depth look at Cardano’s current position within the Elliott Wave cycle, suggesting that ADA is on the of entering a strong upward phase, commonly referred to as “Wave 3.”
Cardano Price Could Soar To $2.88
The analyst compares the current price action of ADA to that of Solana (SOL). Earlier this year, Solana demonstrated a similar price trajectory under comparable market conditions. The comparison is drawn using logarithmic price charts, which clearly displays the Elliott Wave structures, identifying a WXY corrective pullback followed by a new impulse wave setup.
“If we look at the actual wave count of Solana you can see that it did a WXY pullback. Now this corrected pullback caught us all off guard, it didn’t look like a correction pullback in the first place. It looked better as an impulse to the downside […] it caught everyone off guard. Even the bulls and even the bears,” explained XForceGlobal.
The Elliott Wave Theory, which is central to his analysis, posits that markets move in repetitive cycles of waves driven by investor psychology. According to XForceGlobal, ADA is mirroring the early stages of Solana’s previous rally, which saw significant gains as it entered the third wave of its cycle. The crypto analyst outlined that ADA is currently positioned in what appears to be the second wave, following a corrective pullback, which typically precedes strong bullish momentum.
“In the previous bull market alone, we did an 18,000% […] and I’m not sure why people are just brushing this coin off as a dead coin. I believe it’s a very good coin but we just need to find the right opportunity in terms of the timing,” stated the analyst during the video.
Delving into the potential future of ADA, the analyst projects a conservative estimate of a 5x to 10x times increase in its price. This prediction is based not only on Elliott Wave analysis but also on comparative historical data from other high market cap altcoins like XRP, which are currently in similar positions within their market cycles.
“Wave 3’s are usually the most profitable, if not arguably better than what XRP is going to be giving us because XRP right now is on Wave 3 to 4 and we don’t know how wave five is going to be completed and that’s usually the end of a trend. ADA is in a wave three and it may be even going for a wave five which can be even bringing us to higher levels that could be giving us a potential break of the all-time high,” XForceGlobal remarked.
To quantify the risk-reward ratio, the analyst uses a long positioning tool that suggests a 14 or 15 : 1 one risk-reward potential, based on a prospective 600% run. Additionally, the crypto analyst emphasized the importance of historical context and the apparent neglect of “dinosaur coins,” in favor of more recent, meme-driven cryptocurrencies:
“I believe dinosaur coins, AKA coins that have been trading since 2018 or so, that have a relatively long price history, may be setting us up for another run since they haven’t gone for a run during this whole memecoin narrative.”
In conclusion, @XForceGlobal’shighlights a highly optimistic outlook for ADA. Via X, he stated: “Cardano did an 18,000% run in its last bull run, but it also did one of the strongest pullbacks during the bear market. Structure looks very similar to when SOL was creating a bottom as well for a 1-2 sequence. Wave 3 targets would be around $3.”
At press time, ADA traded at $0.3842.