Cardano (ADA) is showing mixed signals in its latest market structure, with technical analysis pointing to both an imminent correction and subsequent bullish potential. While short-term indicators suggest a pullback to the $0.75 support zone, broader patterns indicate a possible rally toward $0.92.
Technical Analysis Points to Short-Term Correction
Prominent TradingView analyst SiDec has identified a complex technical setup for ADA, currently trading at $0.78. The analysis, based on Elliott Wave Theory and multiple technical indicators, suggests a corrective phase is underway after completing a bullish 5-wave impulse move.
Similar to patterns seen in recent XRP price movements, Cardano is displaying a textbook ABC correction pattern, with Wave C expected to complete near the $0.75 support zone.
Critical Support Levels Align at $0.75
Multiple technical indicators converge around the $0.75 price level:
- 50% Fibonacci retracement at $0.7534
- Previous resistance turned support at $0.746
- 21-day EMA at $0.7455
- 21-day SMA at $0.7347
- Volume Point of Control (POC) near $0.7318
Bullish Case for $0.92 Target
Despite the short-term bearish outlook, the broader trend remains constructive. Once the correction completes, technical patterns suggest a potential rally toward $0.92. However, traders should watch for confirmation signals including:
- Bearish engulfing candle reversals
- Clear divergence patterns
- Volume confirmation at support levels
FAQ Section
What is the immediate support level for Cardano?
The strongest support cluster exists around $0.75, with multiple technical indicators converging at this level.
What is the upside target after the correction?
Technical analysis suggests $0.92 as the next major target, though traders should watch for rejection at this resistance level.
How long might the correction last?
While timing exact bottoms is challenging, the completion of the ABC correction pattern typically signals the end of the corrective phase.