The crypto analyst @XForceGlobal has shared a video chart analysis of Cardano, a cryptocurrency many dismiss as a scam. “dinosaur coin” At this moment. When? analysisXForceGlobal’s (@XForceGlobal), a company that provides an extensive look at Cardano’s position in the Elliott Wave cycle suggests that ADA may be entering a significant upward phase. This is commonly referred as “Wave 3.”
Cardano Prices Could Increase To $2.88
The analyst compares ADA’s price to Solana. Solana’s price trend was similar to that of ADA earlier in the year. A logarithmic chart is used to draw the comparison. It clearly shows Elliott Waves, with a correctional pullback WXY followed by new impulse waves.
“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,” XForceGlobal explains what it is.
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According to the Elliott Wave Theory which is at the core of his analysis, markets are driven by waves that repeat in cycles. This theory is based on investor psychology. XForceGlobal says that ADA mirrors the initial stages of Solana’s previous rallyIt saw significant gains when it entered its third cycle. According to the crypto analyst, ADA currently appears to have entered its second wave after a pullback that typically occurs before 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,” The analyst said during the video.
The analyst, when analyzing the future potential of ADA projects a conservative estimate that its price will increase by 5x-10x. The analyst’s prediction was based on both Elliott Wave Analysis and historical comparisons of altcoins with high market caps, such as XRP. These coins are in similar market cycles.
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“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.
For the purpose of calculating the ratio between risk and reward, the analyst utilizes a positioning tool which suggests that a 600% potential run would yield a risk to reward ratio 14:1 or 15. The crypto analyst also stressed the importance of the historical context, and how it is often overlooked. “dinosaur coins,” I’m in favour of meme-driven, more recent 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. He stated via X: “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.”
ADAC traded for $0.3842 at the time of publication.
Featured Image created using DALL.E and chart from TradigView.com
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Source: www.newsbtc.com
