Cardano (ADA/USD) journeys toward $2 from blue box
Cardano is a decentralized blockchain platform and cryptocurrency (ADA) designed to provide a more secure and scalable infrastructure for the development of decentralized applications (dApps) and smart contracts. Launched in 2017 by the Cardano Foundation and developed by IOHK (Input Output Hong Kong), Cardano is unique for its research-driven approach, leveraging peer-reviewed academic studies to guide its development. It operates on a proof-of-stake consensus mechanism called Ouroboros, which enhances energy efficiency and network security.
Cardano completed a bearish cycle in June 2023. From June 2023 low, the cryptocurrency rallied in a 5-wave structure up to March 2024 before another pullback emerged and was completed in August 2024. Thus, the resultant rally emerges into another impulse structure. When the crypto breached the March 2024 high, we prepared to buy the next pullback if it completes a 3 or 7 swing structure as usual. 3-swing structures are zigzags while 7-swing structures are double zigzag Elliott wave patterns.
Cardano (ADA/USD) Elliott Wave chart – 12.11.2024
ADAUSD, H1
On 12.11.2024, we shared the chart above with members citing a 7-swing structure for wave 4 on the H1 chart. In addition, we identified the 1.037-0.909 as the key blue box zone. We expected new buyers from the blue box to cause at least a 3-swing bounce if not a 5-wave recovery for wave 5. Price reached the blue and bounced as we expected. For trade management, we advised members to take partial profit at 1.066.
Cardano (ADA/USD) Elliott Wave chart – 12.12.2024
ADAUSD, H1
On 12.12.2024, a day after, we shared the chart above with members. The price shows a swift separation from the blue box just as we expected. In addition, price surpassed the risk-free area. Thus, traders now run a risk-free trade after taking partial profit. Going forward, we expect wave ((i)) of 5 to finish. Afterwards, a retracement in wave ((ii)) will follow. For as long as the pullback ends above 0.911, the upside should continue.
Author
Elliott Wave Forecast Team
ElliottWave-Forecast.com
