Cardano could rally to unprecedented price marks spurred by bullish technical setups and a treasury-backed stablecoin expansion.
A TradingView analysis by “Migoreng_wrap” identified bullish potential for Cardano, tipping the altcoin to recover from recent consolidation. At the time of writing, ADA has pulled back by 18% over the past seven days and a staggering 55% since the start of the year.
Wave 3 to Lift Cardano
Notably, the analyst views the current market condition as temporary, predicting a lift for ADA. He highlighted that the third wave of a 5-wave Elliott Wave pattern would fuel this rally.
For context, ADA traded within a descending channel from its 2021 all-time high of $3.10 before eventually breaking out in January 2023. After reaching a peak of $0.46 in April 2023, the coin pulled back to retest the support around $0.22 by September.
An extensive Elliott Wave structure began forming around the support area in September 2023, with the first progressive wave pushing ADA to a high of $1.32 in December 2024. From there, the second corrective wave began and has persisted to its current price lows of $0.37.
The analyst predicts that the third wave is on the horizon and could push Cardano to unprecedented heights. He projected an over 846% growth from here, past $3.10, to a new all-time high of $3.50.
Furthermore, the commentator noted that the ADA/BTC chart is showing signs of imminent reversal. While he didn’t provide further perspective, the chart shows an obvious downtrend, with Cardano showing weakness against the crypto leader.
Meanwhile, his USD chart shows that the completion of the 5-wave Elliot Wave pattern could take ADA to double digits.
Stablecoin Push, a Core Price Catalyst
The analyst also highlighted the recent push by the Cardano Foundation to boost global adoption by injecting life into the ecosystem’s stablecoin DeFi liquidity. The Foundation committed an eight-figure ADA to boost this sector, aiming to solve the long-standing issue of a lack of user traction to Cardano DeFi.
According to the market watcher, the stablecoin push would be at the center of the Cardano ecosystem’s 2025/2026 strategy, potentially boosting adoption.
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