Cardano at the crossroads: Can the third Elliott wave break the stance?

ADA’s challenging phase is not over yet. With a 4.59% decrease over the past week and a 61.53% drop since the beginning of the year, Cardano is at a position where many market observers are expecting a turning point. The current price at $0.38 is only 12% of its all-time high ( of $3.09 in 2021), leaving a huge gap to overcome.

Elliott Wave and Accumulation Structure

Technical analysts are paying attention to an interesting phenomenon on the Cardano chart. Since September 2023, when ADA hit a low of $0.22, an Elliott wave structure has begun to form. The first upward wave pushed the coin to $1.32 in December 2024, then entered a correction phase (second wave) which we are witnessing today.

According to the five-wave Elliott theory, it is believed that the third wave is about to appear. This is considered the most powerful wave in the cycle, often creating new highs — and likely surpassing the previous ATH. If the third upward wave starts from the current support level, the possibility of Cardano reaching double digits is not impossible.

ADA/BTC Chart: What signals are being emitted?

A notable detail is that Cardano’s performance against Bitcoin is showing signs of a reversal. On the ADA/BTC chart, the clear downtrend indicates that Cardano has been weaker than the market leader for a long time. However, recent price structures suggest this situation could change, opening opportunities proportional to BTC’s rate.

Stablecoin: The real catalyst

The turning point may lie in the Cardano Foundation’s ecosystem strategy. Recently, the organization has focused on injecting stablecoin liquidity into DeFi, a strategic move to address Cardano’s long-standing lack of appeal in the DeFi space. This commitment, involving up to eight figures, demonstrates sincerity in building the ecosystem.

Enhancing stablecoin liquidity is forecasted to be the foundation for Cardano’s development strategy in 2025-2026. If successful, this move will not only increase the platform’s utility but also potentially attract new investors, especially those interested in stable DeFi solutions.

Future prospects

Combining these factors — Elliott wave patterns, long-term accumulation structure, and strategic ecosystem steps — Cardano is at a transitional point. The third Elliott wave, if triggered, could reshape ADA’s price trajectory. The question is not whether it will rise, but when and to what extent.