Cardano (ADA) traders are facing a critical juncture as Elliott Wave analysis suggests an imminent 50% price correction before a potential rally to new highs. Despite maintaining steady upward momentum in recent weeks, technical indicators are now flashing warning signs for ADA holders.
Elliott Wave Analysis Predicts Major ADA Correction
According to detailed Elliott Wave analysis on TradingView, Cardano is completing a B-wave correction pattern that formed between April and June 2025. While the recent price action may appear bullish on shorter timeframes, the completion of this corrective phase could trigger a sharp decline to the $0.42 support level.
This bearish scenario aligns with broader market dynamics affecting major cryptocurrencies, though Bitcoin’s current strength near $109K could potentially moderate ADA’s correction.
Key Technical Levels to Watch
The projected decline targets the 0.786 Fibonacci retracement level at $0.42, representing a 50% drop from current prices. However, this correction could set up a powerful Wave 5 impulse move targeting $1.60. Critical support levels include:
- Primary support: $0.42 (0.786 Fibonacci level)
- Secondary support: $0.40 (Wave 1 top – invalidation level)
- Current resistance: $0.84 (recent rejection point)
Strategic Opportunities Amid Bearish Forecast
While the short-term outlook appears bearish, this correction could present a strategic accumulation opportunity. The projected Wave 5 rally to $1.60 would represent over 280% returns from the forecasted bottom at $0.42.
Market Impact and Risk Factors
Several factors could influence this technical forecast:
- Bitcoin’s price action near key resistance levels
- Overall market sentiment and volatility
- Institutional investment flows
- Cardano network development progress
FAQ Section
When could the ADA price correction begin?
According to the Elliott Wave analysis, the correction could initiate once the current B-wave structure completes, likely within the next few weeks.
What invalidates this bearish scenario?
A sustained break above $0.84 or a drop below $0.40 would invalidate the current Elliott Wave count.
Is this a good time to accumulate ADA?
Strategic investors might consider preparing for potential accumulation near the $0.42-$0.40 support zone, though proper risk management is essential.
At press time, ADA trades at $0.7706, showing minimal change (-0.2%) over the past 24 hours as traders await clearer directional signals.