Cardano Price Suffers Pullback But Analysts See Major Upside Potential Amid Technical Signals

Cardano Price Suffers Pullback But Analysts See Major Upside Potential Amid Technical Signals

The recent Cardano (ADA) price movement has sparked intense debate among investors. After reaching a high of $0.6897 earlier this week, Cardano experienced a 23% dip, landing it in a technical bear market. Yet, some experts believe that ADA still holds substantial growth potential, predicting that prices could eventually skyrocket. This article dives into the current trends, technical indicators, and expert predictions surrounding Cardano’s price movement as of November 13.

Cardano Price Reversal: Recent Bearish Moves Explained 

Cardano’s recent price action has disappointed bullish investors, with a two-day drop that wiped out significant gains. Despite the current technical bear market, prominent crypto analysts see the potential for a dramatic upside. Gert van Lagen, a well-known analyst on X (formerly Twitter), has suggested that Cardano could reach $10 under typical bullish conditions, and potentially soar to $40, yielding a 7,400% return from current levels. His analysis hinges on the Elliott Wave theory, suggesting that ADA may be nearing the beginning of a third, extended wave upward.

Technical Analysis: Will ADA’s Price Rise to $1 or Beyond? 

In the short term, Cardano’s technical indicators show mixed signals. Analysts have observed the following technical aspects:

• Golden Cross Formation: The 50-day and 200-day EMAs are approaching a crossover, hinting at a potential bullish turn if Cardano manages to hold above the recent support levels.
• Murrey Math Lines & MVRV Indicator: The Murrey Math Lines suggest that ADA is near a critical support/resistance level, while the MVRV ratio has spiked, indicating potential buying interest or signs of overvaluation.
• Fibonacci Retracement Levels: ADA recently retested the 50% Fibonacci retracement level at $0.5424, suggesting a possible consolidation around this area. Analysts forecast a support retest at the 38.2% retracement level ($0.48), with a recovery rally possible if ADA surpasses $0.6900.

If these indicators align, Cardano could target the $1 level, a psychological and technical resistance zone. A rally to this level represents an 87% jump from current prices, although sustained bearish momentum could see ADA revisiting lower supports, especially if it drops below the pivotal support at $0.40.

Long-Term Price Predictions: Will ADA Achieve $10 or Even $40? 

For long-term investors, van Lagen’s optimistic prediction offers an enticing outlook. His $10 target reflects a base-case scenario, hinging on a 1,786% increase from current levels. The more ambitious forecast of $40 aligns with the Elliott Wave theory’s third wave, which tends to produce the most substantial gains in a bullish cycle. While this projection may seem far-fetched to some, the upcoming wave could provide ADA holders with unparalleled growth if historical patterns repeat.

Key Risks and Bearish Scenarios 

The bullish thesis for Cardano remains vulnerable to certain risks:

• Falling User Engagement and TVL: Concerns over ADA’s total value locked (TVL) and dwindling user engagement, raised by figures such as Ben Armstrong (BitBoy), could dampen enthusiasm for further price growth.
• Pivotal Support Levels: Failure to maintain key support at $0.40 could shift ADA into a prolonged bearish phase, with possible downside risks extending to $0.3054.

While Cardano’s recent performance may have disappointed some, the technical indicators and long-term analyses suggest there could still be upside potential. Traders and investors are watching closely, especially for signs that ADA will hold its ground around critical support levels or break through resistance to signal a recovery. Whether Cardano will rally toward the $10 or $40 predictions remains uncertain, but the current technical setup leaves room for both caution and optimism.

FAQ: Cardano Price Analysis and Predictions