Cardano (ADA) Stabilizes Above $0.70 After 14% Pullback

Key Takeaways

• Corrective bottom formation near $0.70 key Fibonacci level
• Potential breakout pattern developing on the 1-hour chart
• Major resistance zone between $1.02 and $1.13

Cardano (ADA) has experienced a significant correction, with price action forming key technical patterns on both higher and lower timeframes.

Will it proceed to recovery, or will the decline continue?

ADA Price Analysis

The 4-hour chart reveals ADA completing an ABC corrective wave. Wave C bottomed on Feb. 3 at $0.51, slightly below the 0.786 Fibonacci retracement.

This suggests a major correction may be complete, forming a potential reversal zone.

Before this correction, ADA had undergone an impulsive five-wave rally, peaking at $1.31 on Dec. 3. Following the correction, price action attempted to recover but found resistance near $0.81 (0.5 Fibonacci retracement), highlighting a key decision point for the asset.

A descending channel pattern is evident on the chart, signaling a possible breakout. It could confirm a trend

shift if ADA clears the $1.02- $1.13 zone.

However, failure to break above resistance may result in extended consolidation or another leg downward.

The Relative Strength Index (RSI) on the 4-hour chart has rebounded from oversold territory, suggesting growing bullish momentum.

ADA Price Prediction

On the 1-hour chart, a lower-degree Elliott Wave impulse pattern is forming, hinting at a potential upturn.

The price is currently in a corrective wave (ii) at around $0.72 within a descending channel after wave (i) bounced from critical support, reaching $0.81. The current structure often leads to an upward breakout.

If the pattern holds, ADA could initiate a wave (iii) surge above the $0.93 level, targeting $1.02, with a possible final extension in wave (v) targeting $1.12.

These levels align with the 0.382 and 0.236 Fibonacci retracements, providing resistance zones to watch.

However, if ADA fails to break the falling wedge structure, a bearish alternative suggests another dip toward $0.60–$0.65, testing deeper support before any bullish continuation. 

The RSI remains neutral, indicating neither overbought nor oversold conditions, making price reaction at key levels crucial for trend confirmation.

Key Levels to Watch

• Immediate Resistance: $0.81 (0.5 Fibonacci retracement).
• Major Resistance: $1.02 – $1.13 (0.236 Fibonacci retracement).
• Immediate Support: $0.702 (0.618 Fibonacci retracement).
• Critical Support: $0.536 (0.786 Fibonacci retracement).
• Short-Term Target: $1.12+ if wave (v) materializes.
• Invalidation Zone: Below $0.536, indicating further downside risk.