- Cardano (ADA) declined over 9% weekly amid a broader crypto market pullback that saw Bitcoin drop to $105,000 and Ethereum to $2,600.
- ADA appears to be forming a 'Power of 3' pattern on the 4-hour chart, involving accumulation ($0.71-$0.85 range), manipulation (drop to $0.65), and potential expansion phases.
- A convincing break above $0.71 would signal market absorption of the manipulation phase, with $0.85 resistance as the next key level to watch.
- Technical projections suggest a potential upside target near $1.03, representing a 50% gain from current levels and aligning with previous April highs.
Date: Wed, June 04, 2025 | 01:10 AM GMT
The cryptocurrency market experienced a sharp pullback recently, dragging most major tokens into the red. Bitcoin (BTC) briefly dropped to around $105,000, while Ethereum (ETH) slipped to $2,600—both retracing from recent highs. This mini correction also impacted several altcoins, including Cardano (ADA).
ADA faced a weekly decline of over 9%, cutting into its monthly gains which now sit at just 3%. Yet, despite this pullback, the chart is beginning to reveal something promising—a well-known structure that could signal the next bullish move.
Power of 3 in Play?
Looking closely at the 4-hour chart, ADA appears to be forming a classic “Power of 3” setup — a market structure often used by smart money traders to track accumulation, manipulation, and eventual expansion.
Accumulation Phase
From around May 8 to May 30, ADA traded sideways in a tight range between $0.85 and $0.71, creating what looks like a traditional accumulation zone. This phase typically represents a period where larger players quietly build positions while volatility stays muted.
Manipulation Phase
On May 31, ADA broke down sharply from this range, dipping to a low of $0.65 before stabilizing around $0.68. This sudden drop likely triggered a wave of stop-loss orders and panic selling — a textbook example of the manipulation phase. These kinds of “fakeouts” are often designed to shake out weaker hands before a potential reversal.
What’s Next for ADA?
If ADA can reclaim the $0.71 level convincingly, it would signal that the market has absorbed the manipulation and is ready to enter the expansion phase. A clean break above the $0.85 resistance could then attract fresh momentum traders, potentially fueling a stronger rally ahead.
The technical projection from this setup points to a potential upside target near $1.03 — a move that would mark a 50% gain from current levels. This zone also aligns with previous structural highs from early April, giving it further technical significance.
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