Cardano is a decentralized blockchain and cryptocurrency (ADA) platform designed to provide a more secure and scalable infrastructure for the development of decentralized applications (dApps) and clever contracts. Launched in 2017 by the Cardano Foundation and developed by IOHK (Input Output Hong Kong), Cardano distinguishes itself with a research-led approach, using peer-reviewed academic research to guide its development. It runs on a proof-of-stake consensus mechanism called Ouroboros, which improves energy efficiency and network security.
Cardano ended its bear cycle in June 2023. From the low in June 2023, the cryptocurrency rose in a 5-wave pattern until March 2024 before another pullback occurred and ended in August 2024. This is how the resulting rally emerges into another impulse structure. When the cryptocurrency broke above the March 2024 high, we prepared to buy the next pullout if it completed the 3 or 7 swing pattern as usual. 3-swing structures are zigzag patterns, while 7-swing structures are double zigzag Elliott wave patterns.
Cardano (ADA/USD) Elliott Wave Chart – 12/11/2024
ADAUSD, H1
On 12/11/2024 we shared the above chart with members, citing the 7-swing structure for wave 4 in the H1 chart. Additionally, we identified 1.037-0.909 as the key blue box zone. We expected recent blue box buyers to cause at least a 3-wave bounce, if not a 5-wave bounce in wave 5. The price reached blue and bounced as we expected. In terms of trade management, we advised members to take a partial profit of 1.066.
Cardano (ADA/USD) Elliott Wave Chart – December 12, 2024
ADAUSD, H1
A day later, on 12/12/2024, we released the chart above to members. The price shows a quick separation from the blue box, as we expected. Moreover, the price crossed the risk-free area. Hence, investors now engage in risk-free trading after making partial profits. Going forward, we expect wave ((i)) of 5 to end. Then the wave will retrace ((ii)). As long as the correction ends above 0.911, growth should continue.
