Cardano is following an Elliott wave structure with a target set to reach $6 upon the completion of the fifth wave.

Currently, Cardano is following a complex Elliott wave structure and market analysts expect the completion of the fifth wave to take it up to the $6 level.

The market-wide volatility took a toll on Cardano’s price action, triggering a breakdown below the $0.62 and $0.60 support levels on April 9. Despite intense bearish pressure, ADA showed resilience by holding on above the $0.55 area on April 10 and 11.

However, the bulls’ strength faded on April 12, resulting in a sharp drop of 14.19%. This is Cardano’s largest intraday loss this year. ADA broke below the psychological support between $0.54 and $0.50 and fell to a new year-low at $0.45.

Prior to April 12, the last time Cardano saw $0.45 was in December last year. Despite recovering from this $0.45 low on April 12, ADA faced another round of shorting strategies that ultimately abandoned the $0.40 level to reach a low of $0.3994 on December 1, 2023. Cardano quickly recovered from this level but still trades below $0.50.

Elliott Wave Structure in Cardano Trading
Amid the downtrend, one prominent market analyst, illuminati_KO27, revealed a TradingView analysis today suggesting that ADA may actually be following a pattern that will eventually lead to a bull breakout. He cited historical data to support his claim.

According to the analysis, Cardano is currently trading with the same five-wave Elliot wave structure that it encountered between 2020 and 2021, which resulted in a new all-time high of up to $3.31. To provide context, the Elliot Wave pattern began in March 2020 when ADA was trading at $0.04.

Cardano Elliott Wave Structure
The first wave rose to $0.14 in August 2020 and then plummeted to $0.08 in the second wave. Cardano recovered from this decline, surging to $2.47 in May 2021 after the completion of the third wave. After a slight decline in the fourth wave, ADA rose to $3.1 in the fifth wave.

The latest analysis suggests that Cardano is now following this Elliott wave structure, having completed the first wave when it rose from $0.24 in October 2023 to $0.81 on March 14. However, ADA is now trading in wave 2, which is the latest downtrend that took it to $0.3994 two days ago.

ADA may rise towards the $6 level
Once the second wave of downtrend is over, analysts expect the third wave to take Cardano to the $3.4 area, which coincides with the Fibonacci 1.618 level. The data suggests that during the fourth wave, ADA might correct below $2 before surging to $6 upon the completion of the fifth wave.

Although the ADA price has gained 6% since yesterday and is currently trading at just $0.4729, it is looking to break the $0.4969 resistance level to push towards $0.50. From its current position, ADA would need to gain 11,68% to reach the predicted price of $6.

Cardano 1D Chart
While the $6 price target is ambitious, some market analysts are predicting even bolder targets. For example, Ali Martinez believes that ADA has the potential to reach $9 at some point in the future. Cardano supporter Chris proposed two possible scenarios this month that could take Cardano to $7.7 or $9.7.

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