$KDA 🚨 KDA/USDT - Approaching the End of Macro Wave 3 – Reversal Imminent?
After nearly 2 years of consistent decline, Kadena (KDA) appears to be in the final stages of its macro corrective structure. Using a blend of Elliott Wave Theory, Smart Money Concepts (SMC), Fibonacci tools, and Price Action analysis, there is compelling evidence that we may be forming a generational bottom.
The chart outlines a clean 5-wave Elliott impulse to the downside. With Wave 3 nearing completion in a historically strong demand zone ($0.06–$0.03), the probability of a long-term trend reversal is increasing.
This zone also aligns with:
A full 2.618 Fibonacci extension,Prior accumulation levels,A potential liquidity sweep below Wave 3,Oversold market conditions likely visible on higher timeframes (RSI/MACD divergence).
On the fundamentals side, Kadena continues to innovate with its high-throughput PoW Chainweb architecture, human-readable smart contracts via Pact, and growing DeFi infrastructure. It remains one of the most undervalued layer-1s in the market with zero major security exploits since launch.
🔮 If the reversal confirms, long-term targets lie at:
$1.25 (0.5 Fib Retracement)$7.97 (prior high)$222 (1.618 macro extension, multi-year projection)
This setup may not play out overnight, but it's the type of structure that smart money patiently builds positions into, while retail fears the bottom.
📊 1. Elliott Wave Theory Confluence
Looking at the macro Elliott Wave structure:
🔹 A clear 5-wave impulsive decline appears to be forming:
Wave 1 & 2 have already played out.Wave 3, being the most aggressive, is complete or near completion.Wave 4 retracement was shallow and corrective (possibly a bear flag/pennant).Wave 5 is projected to complete with a final leg lower— potential bottom expected before a strong reversal.
🔹 Post wave 5, an ABC corrective wave or a larger impulsive reversal is projected (labeled on chart), suggesting a macro trend shift.
🧠 2. Smart Money Concepts (SMC)
💰 Accumulation Zones:
Price is hovering in a demand zone (between $0.06 - $0.25).This area has high probability of institutional accumulation as retail sells into fear.
📉 Liquidity Sweeps:
Recent price action shows a sharp move down, likely a liquidity grab below previous swing lows (a classic SMC manipulation before reversal).The anticipated "spring" move from this zone aligns with Wyckoff accumulation patterns.
🔄 Break of Structure (BoS):
A break above the corrective structure post-wave 5 would confirm a bullish market structure shift.
🌀 3. Fibonacci Retracement & Extension
🔹 Fibonacci Extension:
Wave 3 extension seems to have reached the 2.618% level, which is a textbook Elliott wave projection level.This provides high confluence that Wave 5 bottom may be close.
🔹 Fibonacci Retracement Targets:
Retracement to 0.5 - 0.618 Fibonacci zone (~$1.25 - $7.97) expected in post-wave rally.The ultimate 1.618 extension target (~$222) could play out if a macro bull cycle aligns, possibly by 2029.
🕵️♂️ 4. Price Action Analysis
📉 Bearish Channel Breakdown:
Price has followed a descending channel and is nearing the lower boundary.False breakdowns often result in violent reversals.
📈 Bullish Divergence (likely on RSI):
If RSI or other momentum indicators show divergence, this adds confirmation for a reversal setup.
📌 Key Levels to Watch:
Resistance: $0.3439, $1.25, $7.97
Support: $0.13, $0.06, $0.03
A break and hold above $1.25 could signal the start of a macro uptrend.
🔮 Final Thoughts
🔁 We're likely nearing the end of a macro bearish cycle (Wave 3).
💼 With institutional accumulation signs, Fibonacci confluence, and solid fundamentals**, KDA presents a strong asymmetric opportunity.
🧨 If Wave 5 completes near $0.06 - $0.03, the upside potential toward $7.97 (first macro target) and possibly $222 (1.618 extension) offers high R/R (risk/reward) for long-term investors.
⚠️ DISCLAIMER: This analysis is educational and not financial advice. Always DYOR (Do Your Own Research).
#KDA #KDAUSDT #Kadena #CryptoAnalysis #ElliottWave