Cardano (ADA) holders have been holding their breath lately, waiting for a clear direction in the market. According to a recent video analysis by the YouTube channel More Crypto Online, which is run by an analyst with nearly 300,000 subscribers, ADA is currently in a critical phase that could determine its next major move.
The analyst explains that ADA is in the middle of a corrective pullback that began after the price peaked around May 12. This pullback might actually be setting the stage for a bullish move known as a C-wave rally. If that rally plays out as expected, the ADA price could be headed toward $0.94 and possibly higher. But there’s one important condition that needs to be met.
For the bullish scenario to remain valid, the price of ADA needs to stay above $0.686. This level represents the 78.6% Fibonacci retracement from the last upward wave. As long as ADA holds this level, the current market structure remains intact and a breakout rally remains possible. If it drops below $0.686, however, the outlook becomes more bearish, and a deeper correction could follow.
In that case, the analyst warns of possible declines to $0.643, then to $0.60, and even to $0.51 if the correction deepens into what’s known as an E-wave. These levels are based on past swing lows and retracement zones, and a break below each one would increase the chance of further downside.
On a more optimistic note, the analyst points out that ADA has recently shown some reaction to a key support area near the 61.8% retracement level. This area also lines up with the lower boundary of a trend channel. It’s not enough to confirm a trend reversal, but it shows that buyers are stepping in. The analyst stresses the importance of watching zones rather than relying too heavily on small price structures, which can shift quickly.
Since January, ADA has been stuck in a sideways range with overlapping, corrective price moves. The analyst describes this as a larger triangle pattern and believes that until ADA breaks out convincingly, the market remains undecided. Within this range, ADA needs to overcome the resistance zone between $0.783 and $0.845 to have any shot at reaching $0.94. If it does break above $0.845, that could be the signal that a new rally is underway.
For now, all eyes are on $0.686. As the analyst from More Crypto Online warns, this single level could be the line between Cardano’s next big breakout or a return to bearish territory.
Read also: How Much Will 3,000 ADA Be Worth By 2026? Cardano Price Prediction
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