Cardano’s ADA is currently down by more than five percent and is trading below the crucial $1 mark. Down by more than 14 percent in the last seven days, ADA chart shows a minor correction but nothing major has changed.
The main question remains whether the market is already in the fourth wave of a larger correction or if it’s still in an extended third wave. Key support levels will be critical in determining the next price movement.
Key Support Levels to Watch
The most critical level to monitor is the 64-cent mark. This is the main support level that needs to hold for a bullish scenario to remain intact. If ADA breaks and sustains below 64 cents, it would signal a more bearish outlook. However, for now, ADA remains above this level, which is positive for the bullish case.
If ADA experiences a further decline, there is additional support around 76 cents. This level corresponds with the 38.2% Fibonacci retracement, which is a typical target for a fourth wave correction. As long as ADA holds above these support levels, there is still potential for upward movement.
Smaller Time Frame Correction and Potential for Reversal
On a smaller time frame, ADA has been moving within a corrective price channel since the high formed in early December. While there have been some rebounds, these have been in a three-wave structure, which doesn’t mean a strong confirmation of a trend reversal yet. This three-wave move suggests that the current rally may not be the start of a larger upward trend, but more of a short-term correction.
The next key support levels on the smaller time frame are 93 cents and 83 cents. If ADA drops below 83 cents, it would confirm that the larger fourth wave correction is unfolding. Below that, further support can be found at 76 cents and 64 cents.
Bullish Potential and Next Targets
If the price holds above 64 cents and the corrective structure resolves, ADA could still experience an upward move. There is potential for the price to reach $1.42, $1.72, or even $2.36 in the next wave. However, this is contingent on the market holding key support levels and seeing a reversal in price action.
