As published on Coinpedia Fintech News

Cardano’s native token, $ADA , is experiencing significant downward pressure, falling over 5% in the last 24 hours and more than 14% in the past week. Currently trading below the critical $1 mark, the price action indicates a minor correction, but the overall market structure remains uncertain.

The key question is whether ADA has entered the fourth wave of a larger correction or if it is still extending its third wave. Monitoring support levels will be crucial in determining the next price move.

Key Support Levels to Watch

$0.87: This level is critical for maintaining a bullish outlook. A sustained break below $0.87 would signal a shift toward a bearish scenario.

$0.92: Additional support is located around $0.92, aligning with the 38.2% Fibonacci retracement level, a common target for fourth-wave corrections.

For now, ADA remains above these levels, keeping the possibility of a bullish reversal alive.

Smaller Time Frame Corrections and Reversal Potential

On smaller time frames, ADA has been trading within a corrective price channel since its early December highs. While there have been brief rebounds, these movements exhibit a three-wave structure, which suggests a temporary correction rather than the start of a strong upward trend.

Key smaller time frame support levels include:

$0.97and $0.93: A drop below $0.93 would confirm a continuation of the larger fourth-wave correction.

$0.92 and $0.87: Further declines could see these levels tested as deeper support zones.

Bullish Potential and Next Targets

If ADA holds above the $0.87 support level and resolves its corrective structure, a bullish reversal remains possible. In this scenario, potential targets include:

$1.42: Initial resistance in a bullish wave.

$1.72 and $2.36: Higher targets in a sustained bullish breakout.

However, achieving these levels depends on the market maintaining key support zones and confirming a reversal in price action.

Conclusion

Cardano’s ADA is at a critical juncture, with bears targeting lower support levels while bulls strive to maintain a base for recovery. Holding the $0.87 level is vital for preserving a bullish case, while a drop below this point could shift momentum decisively in favor of the bears. For now, traders should watch these levels closely to gauge ADA’s next direction.

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