Cardano (ADA) no doubt has some interesting weeks ahead of them leading up to this point. The digital asset has hit several new all-time highs in the wake of the rally. Only now more slowly, but still well above the last all-time high from May of this year. The slowdown has caused the asset’s price to lose ground above $ 3, causing it to plummet below $ 2.70 for the first time in over a week.
This loss of momentum has led the market to believe that the asset may be near the end of its rally. But not everyone thinks that. Analyst Jason Pizzino has predicted that the altcoin will have to struggle a bit more and is forecasting a 290% move before the end of this current bull cycle. An increase of this magnitude would bring ADA’s price to no less than $ 7 and cement its claim as the third largest cryptocurrency by market capitalization.
The theory behind the prediction
Jason Pizzino visited his YouTube channel to share his prediction with his 200,000+ subscribers. The prediction is based entirely on a single theory, the Elliott Wave Theory. A theory that predicts the future price development of an asset by looking at extremes in investor psychology that occur in waves. So basically it’s about the investment patterns of the market.
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This current theory puts each bull market into a series of cycles broken down into five distinct waves. During waves 1, 3, and 5, the asset’s price rises upwards. While waves 2 and 4 come with a price correction. For Cardano (ADA), Pizzino says the asset has completed four waves so far, including waves 2 and 4, which represent the market corrections. Now the fifth wave is imminent, which would lead to a massive increase in prices.
Pizzino refers to the current downward correction as wave 4, while identifying the largest wave to date, the price increase from $ 0.10 to $ 2.47 that occurred last month, as the third wave. Since wave three is usually the largest, Pizzino puts the fifth wave on a par with the first, increasing from $ 0.01 to $ 0.17. Place the fifth wave only with a 290% rise.
Cardano (ADA) price on the rise
So far, it doesn’t look like Cardano (ADA) has reached the end of that downside correction. But Pizzino points this out as part of the five-wave theory movement. Compared to the first wave, which saw an increase of 900% between April 2020 and July 2021, the analyst says: “I am pleased that the waves are developing in a similar way.”
Pizzino’s prediction would put the ADA price close to $ 10 | Source: ADAUSD on TradingView.com
Cardano has one last card to play before it can be said that the rally is really over. The Smart Contracts Testnet is currently live and developers have started building DApps in the network. However, the release to the general public is still planned for September 12th. If all goes well with the start, this could be the event triggering the fifth wave of Elliott Wave Theory.
“What do we get if we do 800% or 900% of the low that was set in June and July? That would bring us to about our $ 8 mark. Perhaps by this point we have achieved a return of 1,000%. That brings us to $ 10 or $ 11. “
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Although Pizzino is bullish about the asset from here, he cautions investors. The potential for massive runs is also accompanied by sharp downward corrections that will reverberate in the market. “All good runs come to an end,” says Pizzino.
Featured image by CreditDonkey, chart from TradingView.com