Date: Wed, June 04, 2025 | 01:10 AM GMT

The cryptocurrency market experienced a sharp pullback recently, dragging most major tokens into the red. Bitcoin (BTC) briefly dropped to around $105,000, while Ethereum (ETH) slipped to $2,600—both retracing from recent highs. This mini correction also impacted several altcoins, including Cardano (ADA).

$ADA faced a weekly decline of over 9%, cutting into its monthly gains which now sit at just 3%. Yet, despite this pullback, the chart is beginning to reveal something promising—a well-known structure that could signal the next bullish move.

Source: Coinmarketcap

Power of 3 in Play?

Looking closely at the 4-hour chart, ADA appears to be forming a classic “Power of 3” setup — a market structure often used by smart money traders to track accumulation, manipulation, and eventual expansion.

Accumulation PhaseFrom around May 8 to May 30, ADA traded sideways in a tight range between $0.85 and $0.71, creating what looks like a traditional accumulation zone. This phase typically represents a period where larger players quietly build positions while volatility stays muted.

Cardano (ADA) 4H Chart/Coinsprobe (Source: Tradingview)

Manipulation PhaseOn May 31, ADA broke down sharply from this range, dipping to a low of $0.65 before stabilizing around $0.68. This sudden drop likely triggered a wave of stop-loss orders and panic selling — a textbook example of the manipulation phase. These kinds of “fakeouts” are often designed to shake out weaker hands before a potential reversal.

What’s Next for ADA?

If ADA can reclaim the $0.71 level convincingly, it would signal that the market has absorbed the manipulation and is ready to enter the expansion phase. A clean break above the $0.85 resistance could then attract fresh momentum traders, potentially fueling a stronger rally ahead.

The technical projection from this setup points to a potential upside target near $1.03 — a move that would mark a 50% gain from current levels. This zone also aligns with previous structural highs from early April, giving it further technical significance.

For this bullish outlook to remain valid, ADA must hold above the recent manipulation low of $0.65. A break below that level could invalidate the setup and open the door to further downside.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.