Cardano ($ADA ) has once again shown resilience by reacting to a key Fibonacci support level on the shorter time frame. While the bigger picture remains unchanged from earlier this week, the short-term price action is starting to heat up.
🔹 Reaction from Fibonacci Support
After a strong reaction to the Fibonacci support zone, ADA has now pushed into the first resistance area between $0.866 – $0.896.
This is a standard Fibonacci resistance zone and overcoming it would be an early indication that the next upside move is underway.
🔹 Key Levels to Watch
The current bullish scenario remains valid as long as ADA holds above $0.765 (red dashed line on the chart). That’s the formal invalidation level for the bullish count.
However, before that level is reached, there’s a critical warning level at $0.813 – the 78.6% retracement.
✅ Holding above = bulls still in control.
❌ Breaking below = big problem for the bullish outlook.
🔹 Short-Term Structure
On the microstructure, it’s possible that the low is already in, which would suggest a WXY corrective structure completed to the downside.
Alternatively, ADA could still dip slightly lower in a 5-wave move before turning higher.
In either case, the market is now testing resistance. A decisive break above this zone would give confidence that the C-wave to the upside has started
🔹 Potential Upside Targets
If the C-wave is confirmed, ADA could target:
🎯 $1.11 (100% extension) – the ideal Fibonacci projection.
For now, the structure looks messy, and one more low can’t be ruled out, but the bullish setup remains intact.