Has ADA Finished its Correction? | Credit: Hameem Sarwar
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Key Takeaways
Cardano (ADA) trades inside a descending parallel channel.
The ADA price trades below the $0.85 horizontal resistance.
Can ADA break out in October and move to a new cycle high?
The Cardano (ADA) price failed to break out from its long-term correction channel.
Despite a substantial rally since June, the ADA price has struggled to break through the critical resistance at $0.85.
Now, all eyes are on the diagonal resistance to see if it will break, leading ADA to a new cycle high.
ADA Price Analysis
The ADA price has declined inside a descending parallel channel for the past 300 days, since reaching its cycle high of $1.32 in December 2024.
After preventing three breakdowns (green icons), the ADA price reclaimed the $0.60 horizontal area and surged to the channel’s resistance.
Despite multiple attempts to break out, ADA has failed to close above the resistance level. Moreover, it fell below the $0.85 horizontal area, which now acts as resistance.
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Therefore, the Cardano price has its work cut out for it if it wants to reach a new cycle high. It faces horizontal and diagonal resistance until $0.90, making it difficult for the price to break out.
Nevertheless, the channel’s presence suggests that an eventual breakout is likely, as these patterns typically contain corrective movements.
Momentum indicators also support the breakout. More specifically, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have given a bullish signal that has previously led to massive rallies.
If wave C develops regularly, there will be another slightly lower low before the correction ends.
Hence, the Cardano price could decline toward $0.75 one final time, bouncing at the channel’s support trend line, and then the correction will end.
Cardano’s October Trend
In the short term, ADA’s price may still face one more dip toward $0.75 before the Cardano correction is fully realized.
However, the long-term outlook remains positive, with the RSI and MACD turning bullish and the wave count indicating the start of a larger upward cycle.
If ADA manages to break past the $0.85–$0.90 resistance zone, it could trigger a rally toward $1.84 in October.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
