- One market analyst has claimed that the next price target for Cardano (ADA) is $5, pointing to a five-wave theory that the crypto has been trading in for over a year.
- The altcoin has been stuck in sideways trading, unable to breach the critical resistance at $0.40, but the $0.32 support has held firmly.
Cardano has not had the best run this year despite the broader market bull rally. Since the year started, it has lost over 40%, starkly contrasting most major coins like Bitcoin and Solana, which have gained over 70%. However, according to one analyst, the explosion is close, and the next price target is $5.
ADA trades at $0.348, gaining 3.2% in the past day as the crypto market rebounded, with the overall market cap surging 4% to hit $2.42 trillion. ADA’s trading volume also recorded an uptick, rising 43% to $296 million.
According to the analyst, Cardano has been trading in a five-wave structure since last year, which indicates a bullish setup. In his analysis in December last year, the analyst noted that the altcoin was setting up the structure and that it was in the first wave, “but the main target for this impulse is $16.�?/span>
Revisiting his analysis, the analyst noted that ADA has now completed the first and second Elliot waves, as shown below.Â
The analyst insists that despite faltering this year, ADA is still set to surge, stating, “Intermediate price target is $5, with the same $16 main target.�?/span>
The analysis relies on the Elliot Wave Theory, formulated a century ago. This theory interprets asset price movements as cycles, with each consisting of a five-wave impulse.Â
ADA to $5
Other analysts have predicted a bull rally for ADA. Zach Humphries, who hosts the Crypto Breakfast Club, also believes that the altcoin will hit $5, which would require it to surge 1,400%. This rise would give ADA a $178 billion market cap, which would only be dwarfed by Ethereum and Bitcoin.
Cardano is 14x away from hitting $5. The all time high is $3.10. Current $ADA price is $0.33 (89% from ATH)
BOOKMARK this. I think Cardano will set new all time highs around $5 during this cycle and here's why 👇 pic.twitter.com/aFQnNyEfV9
— Zach Humphries (@Z_Humphries) October 27, 2024
Zach believes that the price rally will be supported by fundamental developments in the Cardano ecosystem, not just by technical indicators like the Elliot Wave Theory. One such major development is its partnership with BitcoinOS to provide a direct bridge to Bitcoin. This allows BTC owners to access Cardano DeFi platforms directly, without the need for third parties, which are costly and risky. As we reported, founder Charles Hoskinson believes that this partnership will make the Bitcoin DeFi space bigger than both Ethereum’s and Solana’s.
By combining a scientific foundation, a sustainable governance model, and a modular design, Cardano is creating a more resilient, adaptable, and scalable blockchain platform than most competitors.
— Zach Humphries (@Z_Humphries) October 27, 2024
However, it’s worth noting that Cardano isn’t the only network tapping BTC in its DeFi. Ethereum dApps have been working with Wrapped BTC (wBTC) for years. Coinbase also recently launched cbBTC wrapped Bitcoin on Base and Ethereum.
