Cardano Holds Key Support at $0.51 With Breakout Targets Near $1

Cardano's Path to Higher Prices Depends on Holding $0.51

Cardano is facing a decline in its market price, currently at $0.8375. The cryptocurrency has dropped by 3.18% in the last 24 hours and 9.66% over the past seven days. 

Amid this downward trend, analysts are focusing on the technical indicators that could provide insight into ADA's future price movements, particularly through the lens of Elliott Wave Theory and Fibonacci retracement levels. More Crypto Online, an analytic account on X, has indicated in their analysis of Cardano against the US Dollar on a 4-hour chart what may be expected for the asset.

Source: X

The Constructive Correction Cardano is Undertaking

To begin with, the Elliott Wave count for ADA reveals that Cardano's price, in the grand scheme of its market, is undergoing a corrective phase. The sequence ADA has been following, according to the report, signals that the asset has inched past the first two waves of an impulsive bullish sequence alternatively labeled (i) and (ii). 

At the moment, wave (iii) is underway, and in the process, an ascending triangle is nearing the apex. This triangle, marked by trendlines, is indicative of a wait before a breakout. The upper boundary of this triangle is the most decisive, as breaking through this resistance could explode ADA to new heights. 

At the same time, the price action is described in more detail by the Fibonacci retracement levels. These levels are drawn from the A to B downward move and suggest key support zones if a retracement occurs. The 50% retracement level sits at $0.5424, the 61.8% retracement follows at $0.4374, and the 78.6% retracement is at $0.3221. These levels are crucial junctures at which ADA may find support in the stack before continuing its climb. In line with this analysis, the bullish narrative for ADA persists as long as the coin holds above these critical levels. 

Fibonacci Extensions: Key Resistance Levels

Moreover, the analyst marked out the Fibonacci extension levels for the bullish move from B to C as they indicate probable resistance zones for ADA’s breakout from the current range. Consider these extension levels as a roadmap to where the price is likely to head next. The 123.6% extension level stands out at $1.4754, followed by 138.0% at $1.7923, 161.8% at $2.4720, 178.6% at $3.1019, and 200.0% at $4.1417. If ADA is able to break above the $1.00 level with ample momentum, these marked levels may serve as price targets. 

Additionally, the triangle's ascending nature implies a pending breakout in ADA's case. The $1.00 level, which corresponds to the upper rim of the triangle, seems to be vital resistance. Should ADA breach this point, further price rallying to the higher Fibonacci extension targets can be anticipated.  

ADA's Recent Milestones Versus Straits Rivals  

Elsewhere, Cardano has now surpassed Ethereum by a substantial margin in commits to core development,. In addition to this milestone, the core development surges show that Cardano’s ecosystem is rapidly evolving—briskly adding improvements for scalability, speed, and security. These metrics show Cardano’s network has innovation on the rise, which could increase investor confidence.  

Amid the development surge in the broader market, Cardano’s network stands out. Notably, the large user base of Ethereum’s network, paired with numerous decentralized finance (DeFi) protocols and strong institutional support, is a well-established ecosystem. Cardano must build on its technical progress with impactful DeFi, NFT, and smart contract applications, where Ethereum is still far ahead, to gain ground.