ADA Correction Nearing Completion - Is It Time to Load Up?
CARDANO/TETHERUS Binance
After tagging the golden pocket resistance zone between $0.9208-$0.9527, ADA completed a clean 5-wave Elliott impulse right into a major resistance. Since then, price has corrected -25%, and we're now likely nearing the end of an ABC correction the final wave C.
Technical Breakdown
Wave A: 5-wave drop after the peak
Wave B: Bounce rejected at yearly open (yOpen) - that was a great short opportunity around $0.845
→ Wave C: Now working toward completion
C Wave Target Zone: $0.69-$0.65
This zone has strong confluence:
0.618 Fib retracement of the entire
5-wave move at $0.6732
1.0 TBFE (Trend-Based Fib Extension)
aligns perfectly
Sell-side liquidity (SSL)
0.786 Fib Speed Fan support
Monthly 21 EMA/SMA adding a final confluence layer
Long Setup
Entry Zone: $0.69-$0.65 (ladder in)
Stop Loss: Below the monthly 21 EMA/
SMA ($0.6)
Target 1: mOpen key resistance
Target 4: 0.666 Fib at ~$0.95
Risk:Reward: ~1:4+
Educational Insight
After a 5-wave impulsive move, ABC corrections are common. Using the Trend-Based Fib Extension tool to project wave C, especially when paired with liquidity zones, VWAP, or moving averages, helps pinpoint high-probability reversal zones. It's about confluence and reaction not prediction.
Indicators
For this analysis, I'm using my own indicators
DriftLine - Pivot Open Zones and MFT MA Support/Resistance Zones
both available for free. You can find them on my profile under "Scripts" and apply them directly to your charts for extra confluence when planning your trades.
