Cardano (ADA) Stalls at Key Support—Breakout or Breakdown Ahead?

Key Takeaways

• Cardano (ADA) is consolidating within a descending channel after completing a corrective ABC pattern.
• The 0.5 Fibonacci retracement is a key support zone.
• A breakdown below $0.825 may push prices spiraling.

Cardano (ADA) remains stuck in a descending channel since peaking at $1.30 earlier this year.

However, recent price action suggests the selloff may be nearing its end, with momentum slowing and consolidating into a sideways pattern.

While ADA’s current levels indicate a potential reversal, the market remains cautious about further declines if key support is breached.

ADA Price Analysis

ADA’s daily chart reveals a completed impulsive Elliott Wave pattern (labeled i-v), followed by a corrective ABC structure. The price now consolidates within a descending channel, testing critical support at the 0.5 Fibonacci retracement level near $0.825.

This $0.825 support zone aligns with the channel’s lower boundary, positioning it as a critical area for determining the next move. Resistance levels are found at $0.941 (0.382 Fibonacci) and $1.011, a key horizontal barrier.

The Relative Strength Index (RSI) signals oversold conditions, increasing the probability of a rebound. However, trading volumes remain lackluster, potentially limiting upward momentum unless renewed buying pressure emerges.

A bullish breakout from the descending channel could set the stage for a test of $1.011 and possibly $1.130. Conversely, failure to hold $0.825 may trigger further declines to $0.708 or even $0.543, representing the 0.618 and 0.786 Fibonacci retracements, respectively.

ADA Price Prediction 

The hourly ADA chart offers a closer look at the corrective phase, highlighting a descending wedge pattern. This pattern often precedes a breakout, and ADA is now testing the wedge’s lower boundary near $0.825.

The Elliott Wave count suggests that wave (ii) of the correction could complete near current levels, potentially sparking a short-term rally. A confirmed breakout above wedge resistance could see ADA testing $1.011, with further upside to $1.130 in a bullish scenario.

On the flip side, a breakdown below $0.825 would invalidate the bullish outlook, paving the way for declines toward $0.708 and $0.543

Key Levels to Watch

• Support: $0.825 (0.5 Fibonacci), $0.708 (0.618 Fibonacci).
• Resistance: $1.011 (horizontal resistance), $1.130 (target after wedge breakout).
• Critical Zone: A breakout above or below the descending wedge will determine ADA’s next major trend.
• Bearish Target: Below $0.825, the next key support is at $0.708.