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.

$ADA DYOR