The long-term correction phase for Cardano (ADAUSD) appears to be reaching its final stages. According to our latest Elliott Wave Theory count, the complex corrective structure within Wave (II)—specifically the Z wave—has potentially found its bottom around the $0.215$ region.
The Current Alternative: Correction Completed?
Our primary focus is currently on the scenario where the downtrend has officially ended. The price has successfully breached the descending trendline (indicated by the dashed green line), which is the first major signal of a trend reversal.
However, in professional trading, we prioritize confirmation over anticipation. We are now monitoring the price action to see if this breakout sustains its upward momentum. A clear continuation above the recent swing highs will solidify this alternative and mark the beginning of a new impulsive cycle.
Key Technical Observations:
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Wave Structure: The completion of the (W)-(X)-(Y)-(X)-(Z) sequence suggests the selling pressure is exhausted.
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Trendline Break: The breakout from the long-term resistance indicates a shift in market sentiment.
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The "Retest" Zone: We are looking for price stability around the $0.280 - $0.275 levels. Staying above this zone is crucial for the bullish case.
Don't Miss the Next Big Move!
The crypto market moves fast, and catching a Wave (III) at its inception is where the most significant gains are made. We are tracking this setup closely to confirm the start of the next rally.
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