Cardano (ADA) Elliot Waves Analysis: In a Corrective Stage After Reaching New Yearly High

Daily Elliot Waves Analysis

The daily Cardano (ADA) chart shows a parabolic rise in Wave 3, reaching a high of $1.31 near the 1.616 Fibonacci extension. After the sharp rally, price momentum has slowed, forming a descending wedge, which signals the beginning of a corrective Wave 4 pullback.

Key support lies at $1.01-$0.90, aligning with the Fibonacci retracement levels where the price is currently consolidated. If the correction deepens, ADA could revisit the 0.786 Fib level near $0.78, where stronger buying pressure may emerge. The Relative Strength Index (RSI) shows a clear downtrend, confirming diminishing momentum and the need for consolidation.

Hourly Elliot Waves Analysis

The hourly chart indicates a corrective ABC structure forming within Wave 4 after peaking at $1.31 (Wave 3). Price is moving downward within a descending channel, testing key Fibonacci support levels, signaling a potential final correction before resuming upward momentum toward Wave 5 targets.

Support levels to watch include $1.01 (0.236 Fib), $0.94 (0.382), and $0.83 (0.5 Fib retracement). If Wave 4 extends deeper, the 0.618 retracement at $0.70 could serve as a strong support zone. RSI remains near oversold levels, suggesting a reversal may occur soon.

ADA needs to break above $1.31 for bullish continuation, signaling the start of Wave 5. The next bullish targets align with Fibonacci extensions: $1.25 (1.618), $1.47 (2.0), and $1.62 (2.272). Failure to hold $0.83 could trigger a deeper downside correction.

Key Levels to Watch

• Resistance: $1.10-$1.13 (descending channel upper boundary).
• Support: $1.01 (0.236 Fib), $0.94 (0.382 Fib), and $0.83 (0.5 Fib retracement).
• Deeper Support: $0.70 (0.618 Fibonacci retracement).
• Wave 5 Targets: $1.47, and $1.62 (Fibonacci extensions).
• RSI Confirmation: Near oversold conditions, indicating potential reversal soon.