Cardano Market Structure Points To Imminent Crash, But $0,9 Remains Possible

18 May 2025 at 08: 02

Reading time: 3 minutes

Cardano (ADA) is currently showing mixed signals. The market structure indicates that a short-term price decline could be on the horizon. While there are bearish indicators that point to a possible decline, the broader trend remains surprisingly robust. Technical patterns suggest that there is potential room for a rally towards $0,90.

Cardano Price Drop Outlook

TradingView analyst SiDec predicts that Cardano price will undergo a significant correction soon, targeting the $0,75 zone. This cautious assessment is based on a detailed analysis using Elliott Wave Theory, Fibonacci tools and key price action zones. SiDec notes that ADA price is currently consolidating after a strong upward move in a 5-wave structure, marking the end of the bullish momentum. It seems that the cryptocurrency is now in a typical Elliott Wave behavior and is transitioning into a classic ABC corrective pattern.

In this context, the cryptocurrency has first seen a pullback, referred to as wave A, followed by a temporary rebound in wave B. SiDec expects wave C to complete the correction, with ADA’s latest downward move nearing its end. Technical indicators point to the $0,705 region as a promising long entry zone. Moreover, it looks at where ADA can find solid support during this corrective phase by utilizing Fibonacci retracement zones.

The 50% retracement of the entire bullish 5-wave impulse is located around $0,7534, a crucial price level close to the previous price swing of $0,746. This former resistance level has not been re-touched yet and therefore naturally qualifies as support. The analysis also identifies a 1:1 ABC extension for the expected ADA correction, with a potential wave C crash target around $0,7492. This creates a strong cluster of technical indicators near around $0,75, indicating a robust support zone.

Furthermore, the daily 21 Exponential Moving Average (EMA) is supporting at $0,7455, while the daily 21 Simple Moving Average (SMA) is slightly lower, at $0,7347. SiDec has also pointed out the Point of Control (POC), which marks the price with the highest volume, near $0,7318. The analyst also highlights that Cardano’s anchored Volume Weighted Average Price (VWAP) falls within the $0,75 support zone, while the Pitchfork tool’s golden zone is dynamically acting as support around the same area.

ADA's Price Path to $0,92 Remains Firm

While SiDec expects a potential crash to new lows for ADA in the near term, the chart also shows a green zone, with a projected bullish rebound. After the crash of wave C, Cardano is expected to recover and rise towards the $0,92 level. However, SiDec warns caution in this area, as $0,92 represents a major resistance zone and coincides with a previous liquidity area that could lead to rejection or profit taking.

SiDec underlines that the risk-to-market tradeoff in this zone will only become favorable once there is clear confirmation, such as an SFP, a bearish engulfing candle, or visible divergence. Overall, if the $0,75 support zone holds, Cardano, currently trading at $0,78, could position itself for a strong recovery move towards $0,92 and beyond.

Frequently Asked Questions

What are the key technical levels to watch for Cardano?
The crucial technical levels are the support zone around $0,75 and the resistance zone at $0,92. These are where significant price moves can occur.

Is there a chance of a rebound after the expected price drop of ADA?
Yes, it is expected that ADA can recover and move back towards $0,92 if the support zone holds.

What should I do if I am considering investing in Cardano?
It is advisable to be cautious, especially around the $0,92 resistance. Invest only when there are clear confirmations of price movement without the risk of rejection.

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