One analyst notes upward momentum in ADA’s price but remains skeptical about a sustained uptrend, citing a lack of evidence in recent green candles.
The cryptocurrency analyst behind More Crypto Online’s YouTube channel released a new analysis video on Dec. 19, updating his price outlook for Cardano (ADA) token.
The report follows a recent analysis by Austin Hilton suggesting that Cardano’s price action is tracking the overall crypto market weakness seen in Bitcoin.
The analyst notes that ADA recently showed upward momentum with a “green candle” on the price chart.
However, he says this does not necessarily indicate the start of a sustained uptrend. “I see no evidence they have tops,” the analyst says regarding the latest green candles.
The More Crypto Online host lays out two potential short-term scenarios. In one short-term bullish scenario, ADA’s price forms an ABC corrective pattern after a preceding downtrend. This would involve the price bouncing to around $0.72 before likely resuming the downtrend per the analyst’s overall bearish outlook.
In an alternative “short-term bearish scenario,” the analyst sees a more complex WXY pattern playing out. This would result in the price dropping from current levels rather than rallying up to $0.72.
Importantly, the analyst stresses that neither scenario changes his view that ADA remains in a larger-degree corrective fourth wave after the preceding bull run. He is still anticipating lower prices over the medium term, potentially down to the $0.50 or $0.39 level.
According to the analyst, traders should watch the 54.3 to 54.4 cent level as key support. A decisive break below this level would confirm the start of another downward leg. Until then, the short-term trend may tilt upward but remain choppy based on the ambiguous price structures.
