Cardano (ADA) is back in the spotlight, surging by more than 7% over the past 24 hours and reclaiming its position above the $1 mark. As one of the leading altcoins, ADA’s price movements are closely monitored by investors. The cryptocurrency is now approaching critical support and resistance zones, with potential for both gains and corrections. Here’s a detailed analysis of what could be next for Cardano.

Wave 4 Setup and Support Levels

Currently, ADA’s price action suggests it is in a potential Wave 4 setup, according to Elliott Wave theory. This wave often represents a consolidation phase before the final push upward. Analysts indicate that support could be found between $0.85 and $0.60, with $0.702 acting as the most critical support level.

The recent pullback from ADA’s highs has been more significant than expected. However, the nature of this pullback—a three-wave correction instead of the typical five-wave—leaves room for optimism. It signals that ADA’s bullish structure remains intact, opening the door for potential upward movement.

Fibonacci Levels and Bullish Potential

Cardano’s price has recently tested and held key Fibonacci support levels, ranging from $0.88 to $0.778. These levels are significant for traders, as they often indicate areas of strong buying interest.

The 100% Fibonacci extension target for the current wave has already been achieved, suggesting that ADA could be gearing up for another leg higher. However, the price must first navigate through important resistance zones.

Resistance Zones to Watch

As ADA edges higher, resistance levels between $1.14 and $1.12 will be the first barriers to test. A successful breakout above these levels could pave the way for a move toward $1.87, a key target for bullish traders.

If the price fails to breach these resistance zones, it may signal that the current rally is part of a corrective phase rather than the start of a sustained uptrend. This makes it crucial for traders to monitor price action around these levels.

Market Outlook and Key Levels

For those already holding ADA from the Fibonacci support zone, analysts recommend moving stop-loss levels to break-even to protect profits. If the price faces rejection at resistance levels, support areas at $0.85 and $0.77 could come into play.

These zones will likely act as safety nets in case of a downward correction. On the upside, a confirmed breakout above $1.14 could reignite bullish momentum, pushing ADA toward its next targets.

The Bigger Picture

Despite recent volatility, Cardano’s long-term prospects remain promising. The blockchain’s continued focus on innovation and scalability, combined with a robust community, provides a solid foundation for growth.

However, as ADA navigates its current price action, traders should remain cautious. Balancing optimism with risk management will be key in making the most of Cardano’s next potential moves.

Conclusion

Cardano’s ability to reclaim and sustain its position above $1 is a testament to its resilience in a volatile market. With key Fibonacci levels holding strong and resistance zones in sight, ADA could be on the brink of a significant move.

As the cryptocurrency enters a critical phase, all eyes are on whether it can convert resistance into support and set the stage for a broader bullish trend. For now, ADA’s short-term prospects remain positive, with a cautious eye on potential pullbacks.