Cardano (ADA) Market Analysis – May 2025 Outlook
Current Price Zone: Testing major Fibonacci support
Trend: Still corrective, potential for bullish reversal if support holds
Market Recap:
ADA has returned to a critical Fibonacci support zone, around 67.8 cents, following a failed attempt to break through 78 cents. A short-term rally was attempted but fizzled out after three waves – not the five-wave impulse needed for a confirmed bullish breakout.
Key Technical Observations:
The support zone between 66.5–67.8 cents remains intact.
No need to adjust support yet, as there was no confirmed five-wave breakout.
A flat correction pattern is likely in play (3-3-5 structure), possibly nearing completion.
A break below 66.5 cents will invalidate the current bullish count and suggest the e-wave of a triangle is underway.
Trade Setup:
Entry Zone: 66.5 – 67.8 cents (buy zone if bullish reaction confirms)
Stop Loss: Below 66.0 cents (to avoid breakdown into e-wave)
Target 1: 73 cents (short-term bounce)
Target 2: 77.5 – 78 cents (ideal C-wave Fibonacci target)
Target 3: 85+ cents (if breakout extends in a wave 3 scenario)
Invalidation:
Break below 66.0 cents increases the probability that ADA has already entered the e-wave decline, likely pushing price toward lower support around 60–62 cents.
Conclusion:
ADA is back at a decision point. If bulls defend the current zone, a rally towards 78 cents is possible. Caution is warranted until a clear reversal signal or 5-wave move confirms strength.
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