Cardano ADA at Critical Juncture: Elliott Wave Theory Predicts Potential 50% Drop Amid Resistance Struggle

Cardano’s ADA is showing signs of vulnerability after failing to break through the $0.84 resistance level, with technical analysts warning of a potential 50% decline. The cryptocurrency, which had shown resilience during recent market fluctuations, now appears to be entering a corrective phase according to Elliott Wave principles. A TradingView analysis indicates that ADA is completing a B-wave correction that began between April and May 2025, with the current price sitting at $0.7475. This development suggests a possible bearish turn for ADA, which could see significant downside if the pattern holds true.

Cardano Faces Potential 50% Decline as Elliott Wave Theory Signals Bearish Turn

Cardano’s ADA exhibits vulnerability after failing to breach the $0.84 resistance level, with technical analysts warning of an impending corrective phase. The cryptocurrency, which had demonstrated resilience during recent market fluctuations, now shows signs of exhaustion according to Elliott Wave principles.

A TradingView analysis suggests ADA is completing a B-wave correction that began between April and June 2025, potentially heralding a Wave C breakdown. This bearish pattern projects a downward target NEAR $0.42, representing a 50% depreciation from current levels. Market participants are closely monitoring whether this technical formation will invalidate ADA’s established uptrend.

Cardano Price Forecast: Triangle Fallout Looms Ahead of ADA ETF Deadline

Cardano’s consolidation persists for a second week as the SEC’s decision on a Grayscale ADA spot ETF approaches. ADA’s funding rate has plummeted, signaling heightened trader anxiety. Technical indicators suggest a potential breakdown below a critical triangle pattern.

ADA trades at $0.74, down 1%, ahead of Thursday’s SEC ruling. The Grayscale ETF deadline was previously extended from April 14 to May 29. Market volatility spikes as anticipation builds, though further delays remain possible—mirroring the SEC’s recent 45-day postponement of Fidelity’s solana Fund listing request.

Despite a 9% May gain, ADA’s price action forms a tightening triangle. Lower highs on March 3, May 12, and May 23 contrast with support from April 9, May 6, and May 25 lows. The 50-, 100-, and 200-day EMAs cluster near the support trendline, potentially cushioning sell pressure. A golden cross between the 50- and 200-day EMAs hints at bullish reversal potential.