Cardano Elliott Wave technical analysis [Video]

ADA/USD Elliott Wave technical analysis

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Flat.

• Position: Wave ((C)).

• Next higher degree direction: Wave II.

• Invalidation level: N/A.

Cardano/US Dollar (ADA/USD) – Trading strategy

After reaching a peak of $1.33 in late 2024, ADA's price has steadily declined in a complex A–B–C corrective pattern. It’s currently testing a key Fibonacci support range of wave 2 versus wave 1, located between 0.5547 and 0.4380. This area often marks the completion of wave (II) before the start of wave (III), which could lead to a strong upward move.

Trading strategies

• Strategy

  • Approach

    • For short-term traders (Swing trade):

      • If ADA stays above the 0.55 support zone and then climbs back over 0.85, traders may consider entering a potential uptrend targeting wave (III).

  • Risk management

    • If ADA drops below 0.321, this wave count becomes invalid, and a new structure will need to be evaluated.

ADA/USD Elliott Wave technical analysis

• Function: Counter Trend.

• Mode: Corrective.

• Structure: Flat.

• Position: Wave ((C)).

• Next higher degree direction: Wave II.

• Invalidation level: N/A.

Cardano/US Dollar (ADA/USD) – Trading strategy

Since ADA's high of $1.33 in late 2024, its price has been in a downward A–B–C correction. The price is now sitting in the important Fibonacci zone between 0.5547 and 0.4380 — a common reversal zone signaling the end of wave (II) and potentially the beginning of wave (III), which may bring significant gains.

Trading strategies

• Strategy

  • Approach

    • For short-term traders (Swing trade):

      • Traders may look for buying opportunities if the price holds above 0.55 and moves back above 0.85, indicating a likely uptrend wave (III).

  • Risk management

    • If ADA drops under 0.321, the current Elliott Wave count becomes invalid, and a reassessment is needed.

Analyst: Kittiampon Somboonsod, CEWA.

ADA/USD Elliott Wave technical analysis [Video]