Cardano (ADA) has been on a consistent upward trend in recent weeks, despite facing resistance at the $0.84 price level. While the cryptocurrency has experienced a minor drop in the past 24 hours, its overall price action remains resilient. However, a bearish outlook based on Elliott Wave theory suggests that ADA could be heading for a significant price decline, with a potential target as low as $0.42 in the coming weeks.
The current technical analysis, rooted in Elliott Wave theory and presented on TradingView, indicates that Cardano is nearing the end of a B-wave correction that has unfolded between April and June 2025. This correction is part of a larger corrective phase, and although it may appear bullish on shorter timeframes, Elliott Wave theory suggests that it is setting the stage for a sharp C-wave crash.
According to this forecast, Cardano’s price could experience a substantial decline, potentially bottoming out around the $0.42 region, which aligns with the 0.786 Fibonacci retracement level from the previous impulse. The ABC formation within the larger corrective Wave 4 is seen as a precursor to a bullish Wave 5, with a cautionary note that ADA should not drop below $0.40 to maintain the broader long-term bullish structure.
While a projected 50% drop to $0.42 may seem alarming for short-term holders, it could also present an opportunity for accumulation before a potential push towards $1.6 in a subsequent bullish Wave 5. However, it’s important to note that this bearish scenario is contingent on various factors, including Bitcoin’s price action, which could influence ADA’s trajectory.
As ADA currently trades at $0.7706, down slightly in the past 24 hours, the market dynamics remain fluid. The projected correction to $0.42 is subject to change based on external factors, particularly Bitcoin’s performance. Therefore, it will be crucial to monitor ADA’s price action closely in the coming days to assess the validity of the Elliott Wave analysis.
In conclusion, while the Elliott Wave theory points to a potential downturn for Cardano, market conditions can shift rapidly. As such, investors should exercise caution and stay informed about the latest developments to make well-informed decisions regarding their ADA holdings. Stay tuned for updates on ADA’s price movements as the cryptocurrency market continues to evolve.