Tue, 27 May 2025 14:00:21 +0000

Cardano (ADA) has shown resilience in recent weeks, maintaining an upward trajectory despite facing resistance at the $0.84 level. While the cryptocurrency has experienced a slight dip in the last 24 hours, a new technical analysis based on Elliott Wave theory suggests a significant price correction could be imminent. The analysis points to a potential 50% crash for Cardano, with a target price as low as $0.42 in the coming weeks. This forecast is prompting investors to consider whether it's time to exit their positions or view this potential downturn as a buying opportunity.

Elliott Wave Analysis and the Looming Correction

According to the Elliott Wave count, the current price action of Cardano (ADA) appears to be completing a B-wave correction, which has been forming between April and June 2025. This B-wave is part of a larger corrective phase, potentially trapping investors before the final C-wave crash.

• The analysis suggests a sharp decline toward $0.42, coinciding with the 0.786 Fibonacci retracement level.
• The broader bullish structure remains valid as long as ADA doesn't fall below $0.40, the top of the first major wave.
• A drop below $0.40 would invalidate the long-term bullish setup.

Impact on the Crypto Market

The predicted crash of Cardano could have various impacts on the broader crypto market, mainly for short-term holders. However, the Elliott Wave analysis also suggests that a significant buying opportunity might arise this correction.

• Potential short-term losses for ADA holders if the prediction holds true.
• Opportunity for accumulation at lower prices if ADA corrects towards $0.42–$0.40.
• Possible ripple effect on other altcoins if Cardano experiences a significant correction.

Future Outlook

While the Elliott Wave analysis presents a bearish outlook, it's important to consider the broader market context and the potential for a bullish reversal. The analysis predicts a bullish Wave 5 following the correction, with a target price of $1.6.

• Potential for a bullish impulse Wave 5 to push ADA above $1 after the projected correction.
• Dependence on Bitcoin's price action; a continued Bitcoin rally could invalidate the ADA correction.
• Importance of monitoring price action in the coming days to assess the likelihood of the predicted correction.

At the time of writing, ADA is trading at $0.7706, down by 0.2% in the past 24 hours. The market awaits further developments to confirm or deny the predicted 50% crash for Cardano.