Cardano is currently moving within a medium-term ascending channel. After the second touch of the channelās lower boundary, the price initiated a 5-wave impulsive structure. Wave 4 has retraced precisely 0.618 of waves 1 through 3 and coincides with the bottom of the channel ā a zone that also reflects a Change of Polarity, where former resistance is now acting as solid support.
Currently, wave 5 is developing, but the bullish momentum appears weaker compared to the preceding bearish leg ā a possible indication of buyer exhaustion. Interestingly, the projected end of wave 5 aligns with the 0.618 retracement level of the prior decline and overlaps with the Pivot Point R2 zone, which could serve as a strong resistance area.
Based on this setup ā and with strict risk management in place ā Iāve entered a long position with the stop-loss placed just below the tip of wave 1. Cardano remains one of my preferred crypto assets, and this pattern may offer a promising bullish continuation opportunity.
š Disclaimer: This analysis is for educational purposes only and does not constitute financial advice.