Cardano is a cryptocurrency that has been on fire this year. From the beginning of January 2021 to today, this alt coin has increased from about $0.18 to $2.80.
This increase is not for the faint of heart. Cardano is a smart contract platform that is a competitor to Ethereum. Therefore, the challenges Ethereum faces could be to the benefit of Cardano.
One of the big challenges for Ethereum was making the platform scalable from a users perspective without the user paying huge fees. Those struggles has benefited Cardano which has helped fuel their monster rally.
Digging into the charts, I’m seeing a pattern to where Cardano’s Elliott Wave count is behind bitcoins. That makes sense as bitcoin is a lot older than Cardano. This was solidified at the March 2020 pandemic low where Cardano reached a new low but bitcoin held up.
Above, we can see bitcoin is experiencing its 4th wave correction. Cardano is still lifting off in its first wave and is nowhere near its fourth wave correction.
Here is Cardano’s Elliott wave count:
In this video, you’ll find the longer-term Elliott wave count for Cardano which is incomplete to the upside.
Additionally, we review two possible counts for the intraday 4-hour chart time frame. One of the wave counts looks for a current extension higher. I would not be surprised to see Cardano pop up to $3.83 and possibly higher.
The alternate wave count looks for a near-term correction in wave 2 that may retracement back to $1.50 or so. Regardless, longer-term, I would not be surprised to see Cardano near $4.
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Bitcoin’s Elliott Wave analysis
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