Cardano price suffered has suffered a harsh reversal, falling for two consecutive days, and moving into a technical bear market. After soaring to $0.6897 on Monday, ADA has dropped by 23% and is trading at its lowest level since November 10. Still, some analysts believe that Cardano has more upside, with one expert predicting a 7,400% jump to $40, based on Elliot Wave analysis.

Crypto Analyst Delivers A Huge Cardano Price Forecast

Gert van Lagen, a popular crypto analyst with over 104,000 followers on X, believes that Cardano price has more upside in the longer term. In his base case, he believes that ADA could jump to $10, implying a 1,786% increase from the current level. 

His most optimistic scenario is where Cardano token jumps to $40, which is 7,400% higher than the November 13 levels. He based his argument on a unique pattern known as the Elliot Wave, which theorizes that assets move in five waves, with the third one being the longest.

In his ADA price prediction for a surge to $10, he sees the coin being currently in the second corrective wave, which is usually followed by the third strong phase. 

ADA Price Technicals Point To More Gains to $1

Cardano’s move to a bear market happened as investors questioned some of the recent bull case. In a statement, Ben Armstrong, popularly known as BitBoy, raised concerns on whether Charles Hoskinson would become a crypto advisor as was widely speculated. He also questioned the falling TVL and waning user engagement.

Technicals point to more Cardano gains despite the ongoing pullback. First, the daily chart shows that the coin is about to form a golden cross, with the spread between the 200-day and 50-day Exponential Moving Averages (EMA) approaching their crossover. The two averages are trading near the major S/R pivot point of the Murrey Math Lines. 

Meanwhile, the Market Value to Realized Value (MVRV) indicator used to assess an asset value and investor behavior, is pointing upwards and is hovering at its highest level since March this year. While a move above 3 is a sign of overvaluation, it could also be seen as a sign of momentum.

ADA price has also retested the 50% Fibonacci Retracement level at $0.5424. Therefore, there is a likelihood that the token will drop and retest the 38.2% retracement point at $0.48, and then bounce back. More upside will be confirmed if the coin rises above this week’s high at $0.6900. Such a move could catapult it to the psychological point at $1, which is an 87% jump. 

Cardano’s bullish estimate will become invalidated if the coin drops below the major S&R pivot point at $0.40. If this happens, it will drop and retest the support at $0.3054, where it struggled to move below since August. 

The post Elliott Wave Insights Hints Cardano Price Wave 3 Breakout to $40 appeared first on CoinGape.

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