ADABTC
just completed its fifth Elliot Wave, and we are currently on our way to step C of an ABC wave formation. ADA future trend is dependent on how it performs over the next week. If ADA reaches the blue box (step C) and breaks out upward, expect another Elliot Impulse up. I believe this is unlikely because of a head and shoulder formation from a TA perspective, and because fundamentally, ADA is overvalued. Unlike its price correlation brethren
XRPBTC
and
XLMBTC
, Cardano (ADA's platform) is still under development and Cardano's next major update will not be released until Q2 2018. If ADA falls below the 5000 satoshis (the blue box area), expect a bear market down to 3200 satoshis as the First Support Level, with 2400 satoshis as the bottom of the bear market if ADA breaks below the first support level. I expect ADA to trade between 3200 satoshis and 4000 satoshis if it maintains above the First Support Level, and between 2400 satoshis and 3200 satoshis if it breaks below that support level.
ADA will re-enter a bull market if the Cardano team releases the major update, Shelley, on time in Q2 2018. If the team fails to do that, I predict ADA will, at best, stagnate in price, at worst, continue a bear market.
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Any analysis in this article is my personal opinion and not professional advice (I'm an amateur/retail trader). This is my first analysis on TradingView. I hope you liked it and happy trading!
