While Bitcoin maintains a trading value around $51,300, the altcoin market exhibits mixed behavior, with some currencies reaching new peaks while others, like ADA Coin, have yet to begin their expected upsurge. A potential explanation is that investors are cautious due to the erratic price action of Bitcoin, raising doubts about the profitability of ADA Coin investments.
Cardano (ADA) Gains Stability
Currently valued at $0.58, ADA Coin’s price progression has demonstrated a promising sign by consecutively closing above a historically pivotal resistance level for two weeks. This pattern is seen as a harbinger of a potential trend reversal and has infused a sense of medium-term optimism among investors, given ADA’s record high of $3 during a past bull run.
Despite ADA showing an upward trend in the short term, the diminishing strength in the Relative Strength Index (RSI) suggests potential downward risks. However, Bitcoin’s cumulative value chart appears stable, which may alleviate immediate concerns.
Forecasting ADA Coin’s Trajectory
On a daily scale, ADA Coin’s prospects appear favorable as the price broke through a declining resistance line on February 8th, achieving a high of $0.64 by February 20th. The coin has managed to maintain its ground above the crucial $0.58 level.
The daily chart also features a positive Elliot Wave count, an analytical tool commonly used for predicting trend directions and pinpointing peak and trough levels in advance. According to this count, ADA is poised to culminate its fifth wave with a potential peak at $0.82. However, after reaching this zenith, a corrective phase is expected, with profit-taking possibly driving the price back to its initial surge point.
Despite the optimistic forecast, a fall below the $0.58 mark could trigger a sharp sell-off, with ADA potentially targeting lows under $0.52. Bitcoin’s pricing actions, particularly if it sustains above the $50,400 level, will significantly influence ADA Coin’s price trajectory.