📊 Cardano Needs This Level to Confirm End of Consolidation in Valid 1-2 Wave Pattern

The recent price development for Cardano (ADA) mirrors a 1-2 wave in a broader Elliot Wave Theory structure. However, Cardano needs to reach an identified price level to confirm the structure and the end of the wave 2 correctional push.

🔸 Cardano in a Valid 1-2 Wave Pattern?

Research firm More Crypto Online identified in its recent X post that Cardano is in a valid 1-2 wave pattern. An accompanying chart provides further context, showing whats appears to be an Elliott Wave pattern on the 30-minute timeframe.

The chart labelled the January 6 peak price of $0.43 as the end of the first wave of the structure. For context, this first wave began at the $0.32 lows on December 31, 2025, spurring a 34% surge to the early January high.

Notably, the chart suggested that wave 2—typically corrective—started after the end of the bullish session. This has led Cardano to drop to its January 19 low of $0.34 before rebounding to its current market standing.

🔸 Confirmation and Invalidation Points

Furthermore, the validity of this formation remains in contention, and More Crypto Online has shared points to confirm whether it is actually an Elliott Wave structure in the works. The platform highlighted that Cardano would confirm this pattern when it breaks above $0.404.

Reaching this price level, which aligns with the lower high formation on January 17, would also confirm that ADA has formed the low for the wave 2 corrective phase. Nonetheless, the analyst also identified the potential for further correction to retest the $0.34 low, which aligns with the 78.60% Fibonacci retracement level.

Meanwhile, Cardano can also invalidate this Elliot Wave structure formation if it drops to $0.328. This would imply a decline below recent lows, a move that would further add pressure on ADA’s price.

If wave 2 forms completely, the next is a bullish wave 3 phase, which typically is the largest uptrend in the Elliott Wave Theory.

#ADA | #Cardano
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