Peter Smith
⬤ Cardano has found stability after a prolonged decline, with ADA hovering around $0.29 on the monthly timeframe. The pullback came after a sharp cycle peak and has played out in a controlled fashion rather than a panic selloff. The decline from the charted high has unfolded in three distinct waves—an ABC corrective structure that usually indicates consolidation within a bigger trend rather than a full reversal.
⬤ The chart reveals a clear three-wave retracement from the peak shown by the arrow, with price now compressing near historically significant levels. Downside momentum has slowed as ADA nears long-term demand zones, and recent candles are stacking up above previous structural lows. This price action shows the market has transitioned from aggressive selling to consolidation mode, supporting the idea that we're looking at a correction rather than a bearish breakdown.
The decline has developed in three distinct waves, commonly described as an ABC corrective structure, which typically signals consolidation within a broader trend.
⬤ The spotlight stays on the long-term support zone just under $0.24, clearly marked on the chart. This level has worked as a solid floor during past price cycles and now serves as the key line in the sand for the current structure. As long as ADA stays above this support, the broader technical picture holds together and backs up the corrective interpretation. But a sustained drop below $0.24 would seriously damage the structure and open the door to deeper downside.
⬤ This setup matters beyond Cardano itself. How ADA interacts with this long-term support can shape sentiment across the wider altcoin market. A continued hold above $0.24 would confirm that recent weakness is just consolidation rather than capitulation. A break below, however, would shift focus to increased downside risk and challenge the corrective view that's currently visible on the monthly chart.
Peter Smith
