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Investing.com – The recent acceleration in losses of and other cryptocurrencies is because the threat of blockchain collapse has significantly affected confidence in digital assets.
A recovery has certainly occurred in recent days, but it may be only a correction and in no way the starting signal for a new rally.
The analyst behind the Twitter account (NYSE:) “il Capo of Crypto” uses Elliott Wave Theory for his predictions. According to this, each cycle of a movement consists of five different waves.
For Cardano, this would mean that the fifth wave of the current downward movement is yet to come. The target zone lies in the range of $0.30 to $0.35.
From a fundamental point of view, it must be said that the founder of Cardano, Charles Hoskinson, recently confirmed that the deployment of Vasil Hard Fork is going according to plan. The date of the upgrade, June 29, therefore does not change. It is even possible that the testnet will already be launched at the end of May.
Cardano Technical Course Marks
Cardano has managed to recover from its recent low in the $0.4033 area. So far, however, it appears to be only a correction of oversold conditions.
The 23.6% Fibo retracement of the downside move from $1.2430 to $0.4033 offers immediate resistance at $0.6015, which has yet to be breached sustainably.
Given this, the cryptocurrency is likely to test the psychological mark of $0.50, and below that, losses should be expected towards the recent low.
Only if the bulls manage to break above the 23.6% Fibo retracement can a rally towards the 38.2% Fibo retracement of $0.7241 be initiated.
By Marco Oehrl
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