TLDR
- Cardano is nearing a crucial resistance level at $0.90, which could trigger a larger wave five rally.
- The token is following a five-wave Elliott pattern, with wave four recently concluding at $0.78.
- A breakout above the current wedge resistance could propel Cardano towards a target range of $1.085 to $1.20.
- Analysts suggest that Cardano’s daily RSI indicates room for further growth before a potential correction.
- Market sentiment remains bullish, with predictions pointing to possible price targets as high as $1.860.
Cardano has reached a key level near $0.90, signaling a potential breakout to initiate wave five of a bullish pattern. However, the current rally must hold above the wedge resistance to validate the next leg higher. Analysts stress that confirmation remains critical before Cardano targets the projected $1.20 zone.
Cardano Follows Five-Wave Pattern, Approaches Key Resistance
Cardano has moved back to $0.895, recovering from its earlier drop to $0.782 on September 1. This movement aligns with the fourth wave in a five-wave Elliott pattern that started in June. Market analyst “Quintn” highlighted this structure in his recent TradingView post.
The first wave began from the June low of $0.511 and rose to $0.594 before correcting to $0.536. Cardano then surged in a third wave, reaching $1.020 by mid-August. The fourth wave correction followed, sending prices back to the $0.78 zone.
Since then, Cardano has traded inside a descending wedge pattern formed from the $1.020 high. On Thursday, the token touched the upper edge of the wedge, closing at $0.894. It briefly broke above, hitting $0.909, but failed to hold the breakout.
Bullish Momentum Builds, but Confirmation Still Pending
Cardano must confirm a clean break above the wedge to validate the fifth wave move. “A sustained breakout activates the next wave up,” noted Quintn. But without it, Cardano may continue the fourth wave correction.
The daily RSI has cooled to 58.7 after entering overbought territory earlier in the week. This signals that Cardano may still rise before a potential pullback. If buyers hold the $0.89 neckline, the breakout may gain strength.
Quintn believes that a breakout opens targets of $1.085 to $1.20 for the fifth wave. This range aligns with the top of the longer-term ascending channel. Cardano’s 21% to 34% upside would follow the broader crypto market’s bullish momentum.
Market Eyes Larger Targets as Confidence Grows
Other market voices support the bullish outlook for Cardano beyond $1.20. Analyst Lark Davies also mentioned a bullish pennant breakout aiming for $1.20. Meanwhile, Bitcoinsensus forecasted a more aggressive target of $1.860.
ADA continues to show strength amid rising interest across altcoins. Still, analysts agree that a confirmed breakout is essential to avoid a false move. At present levels, Cardano remains at a pivotal point.
Should momentum continue, Cardano could soon establish wave five’s full trajectory. Until then, the $0.89 zone remains the immediate level to watch. A decisive break here could determine Cardano’s short-term trend direction.
