Due to concerns that the Cardano blockchain might be unable to accommodate a significant number of smart contract transactions, the price of the ADA token has dropped by 8.5 percent to $ 2.58. The token’s market valuation has dropped to $ 86.4 billion.
Amidst bearish sentiment in the market analyst Jason Pizzano has made a bullish prediction for ADA in the present bull run.
The Elliott Wave theory, which projects future price movement by looking at crowd psychology that manifests in waves, is used by Pizzino to make the case for ADA’s next leg up.
Cardano, according to Pizzino, has finished waves one through four and is currently in the fifth and final wave.
He says he is looking forward to seeing how the waves play out. He points out that $0.10 to $2.47 was the largest wave. He goes on to say, When it comes to Elliott, the third wave is always the largest.
He notes,Wave one (from $0.01 to $0.17) and wave five (current leg) are roughly equal. This does not have to be the case, but it is what we can expect to see. We’re merely going to speculatively price some things to give us some numbers.
Further, wave two is the pullback from $0.15 to $0.08, wave four is the correction from $2.47 to $1.00.
Cardano Price : Wave 5 to top at $11
Pizzino uses the strength of ADA’s first wave, which rallied over 900 percent between April and July 2020, to compute the height of Cardano’s fifth wave.
“What do we get when we if we do an 800% or 900% from the low that was put in in June and July… That would bring us to around our $8 mark… Maybe we hit a 1,000% return from that point. That’s going to bring us up to $10 or $11.”
Pizzino’s highest aim of $11 is a 290 percent upside potential from Cardano’s current price of $2.80.