Cardano’s ADA is currently down over 5% and trading below the crucial $1 mark. Down more than 14% in the past 7 days, the ADA chart shows a slight correction, but no major change.
The main question is whether the market is already in the fourth wave of a larger correction, or if it is still in an extended third wave. Major support levels will be important in determining the next price movement.
Key support levels to look out for
The most important level to monitor is the 64 cent mark. This is the key support level that needs to hold for the bullish scenario to hold. If ADA dips below 64 cents, it would signal a more bearish outlook. But for now, ADA is still above this level, which is positive for bulls.
If ADA falls further, additional support could be found near 76 cents. This level corresponds to the 38.2% Fibonacci retracement, which is a typical target for a 4th wave correction. As long as ADA remains above these support levels, there is still upside potential.
Possibility of correction and reversal on shorter time frames
Looking at a shorter time frame, ADA has remained within a correction price channel since the high formed in early December. Although there was some rebound, it was a three-wave structure, and a trend reversal was not strongly confirmed yet. This three-wave movement suggests that the current bull market may be a short-term correction rather than the start of a larger uptrend.
The next major support levels on the shorter time frame are 93 cents and 83 cents. If ADA falls below 83 cents, it will confirm that a larger 4th wave correction is unfolding. Below that, further support is seen at 76 cents and 64 cents.
Bullish potential and next goals
If the price holds above 64 cents and the correction structure is resolved, ADA could still move higher. The next wave could see the price reach $1.42, $1.72, or even $2.36. However, this depends on whether the market holds key support levels and the price movement reverses.
