Cardano (ADA) To Hit $0.86 Before Move Higher
– Gann Analysis is an advanced form of technical analysis.
– Gann’s geometry plays a minor role, time is the most important factor in Gann Analysis
Cardano (ADA) Weekly Chart Elliot Wave Analysis
Above: Cardano (ADAUSD) Weekly Chart
Anniversary dates in Gann’s work play an important role. Gann wrote that we need to pay attention to when all-time highs and lows formed because they will more than likely be important in the future. Look at any financial instrument and you will see for yourself how accurate Gann was with this market observation. The blue vertical lines represent the date of the prior all-time high for Cardano that was found in the first week of January, 2018 – all other blue vertical lines are placed on the first week of January. In 2019 and 2020, Cardano was trading at or near all-time lows in the first week of January. In January 2021, Cardano extended highs from the 2020 highs in December 2020.
Above: Cardano (ADAUSD) Daily Chart
The daily Cardano chart above highlights various swing day counts from important swing highs and lows. The first major cycle from the Covid crash low in March 2020 is the 130 day cycle that ran from March 13 2020 until the swing high on July 27th, 2020. 130 days is close to the 135 days cycle which Gann indicated would likely be a high that would end a topping pattern and can cause fast changes in trends. We didn’t get a fast trend change, instead we saw price consolidate and move slightly lower over a 58 day period (no Gann cycle). Then from the September 23rd 2020 swing low to our current date we get to our current date and complete a 180-day cycle. The 180-day cycle in Gann’s cycles of the inner year is the second most powerful and important cycle. It is often a turning point for trending markets. The 180-day cycle has a high probability of support or resistance occurring at this date range. It can extend to 198 days if the trend has had extreme momentum (which Cardano has).
Below the major highlighted levels you will see four orange measured lines starting at the Covid crash lows. The four Gann cycles measured are the 250, 270, 315, and 365 day cycles. We’ve just completed a 365 cycle right up against an inner 180-day cycle. Both the 365 and 180-day cycles end near the Gann season date of March 22nd (Spring). This confluence of time zones points to a market that has completed its run and now must decide the direction it will move. Because the trend is bullish, we should naturally see higher prices. But I am looking for a short term corrective move.
From the most recent all-time high made on February 27th, 2021, I’ve measure out 90-days to May 28th, 2021. Over the next 49 to 99 trading days (between April 17th, 2021 and June 6th, 2021) I would expect to see Cardano move no lower than its average retracement range of 40-45%, which would bring Cardano to the $0.86 value area.
Synopsis: Look for Cardano to trade near $0.86 between April 27th 2021 and June 6th, 2021 before resuming a move higher.