Date: Fri, July 25, 2025 | 06:32 PM GMT
The cryptocurrency market is seeing another wave of volatility after a multi-week rally. Ethereum (ETH) has cooled off, sliding back to $3,650 from its recent $3,875 peak. The correction is spilling across the board, with altcoins like Cardano (ADA) taking a hit.
ADA is down 4% today, trimming its monthly gains to 39%. Yet, while the dip looks discouraging to casual traders, a promising fractal pattern is emerging — one that signals a potential rebound ahead, similar to what SEI experienced before its explosive breakout.
ADA Mirrors SEI’s Breakout Setup
A closer look at ADA’s daily chart compared to SEI’s shows a near-identical pattern forming.
SEI recently broke free from a textbook falling wedge, a well-known bullish reversal pattern. After reclaiming its 200-day moving average (MA), SEI surged, only to face a 25% pullback inside a marked yellow consolidation zone. From there, it bounced sharply off its 200-day MA, igniting a massive 57% rally.
ADA appears to be tracing this same roadmap. Like SEI, ADA broke out of its falling wedge, rallied into its own yellow consolidation zone after reclaiming the 200-day MA, and is now correcting back toward that crucial support level, which sits near $0.7418.
This point — right above the 200-day MA — was exactly where SEI reversed its pullback before blasting higher, hinting that ADA could be approaching a similar inflection point.
What’s Next for ADA?
If ADA’s price action continues to follow SEI’s fractal, the altcoin could briefly dip toward its 200-day MA near $0.7418 before stabilizing and launching its next leg upward. Clearing the yellow resistance zone on strong volume could pave the way for a rally toward $1.12, marking a potential 50% upside from the current support zone.
While the broader market correction adds a layer of caution, ADA’s fractal resemblance to SEI’s successful breakout offers a glimmer of optimism for bullish traders.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct your own research before investing in cryptocurrencies.