thecryptobasic.com
The recent Cardano retracement was part of a broader bullish pattern that could potentially drive prices to multi-month highs.
Notably, the pattern features a price trend in waves of correction and expansion. Cardano is currently nearing the end of the retracement wave and could enter the next bullish phase.
Key Points
- The recent Cardano retracement was part of a broader bullish pattern that could potentially drive prices to multi-month highs.
- The pattern features a price trend in waves of correction and expansion, and Cardano is currently close to the end of the retracement wave.
- Currently, Cardano is in a price range, consolidating between the support around $0.340 and the resistance at $0.37.
- The target for this IK (Impulsive Corrective) pattern is $0.669, a price level Cardano last attained in October 2025.
Cardano and the IK Pattern
Analyst BlueSK9 shared an interesting development in the Cardano 1-hour chart in his recent TradingView commentary. Specifically, he highlighted the formation of an IK structure, where I stands for “impulsive” and K for “corrective.”
An accompanying chart paints a clear picture, showing that this pattern works in waves. Specifically, it started taking shape on January 1, with wave (A) forming when $ADA reached the yearly high of $0.437.
Meanwhile, the wave (B), which is corrective, started immediately after the end of wave (A), with $ADA consolidating first until a rejection on January 14 pushed it to recent lows of $0.332. This could mark the end of wave (B) if Cardano holds above and breaks above major resistance areas.
What to Expect from Cardano
Currently, Cardano is in a price range, consolidating between the support around $0.340 and the resistance at $0.37. If it breaks out of this range, the next major supply zone lies along a descending trendline at $0.384.
After this, it could visit the “sequence activate” area at the January 6 high of $0.43. Breaking above this area not only confirms the end of the corrective wave (B) but also validates the entire structure.
From there, the bullish wave (C) will be in full force. According to the analyst, the target for this uptrend is $0.669, a price level Cardano last attained in October 2025. This would mark an 87% increase from the current market price.
Key Caveats to Note
Notably, this IK pattern is still in its formation stage. As a result, nothing is confirmed at the moment. As previously highlighted, Cardano would need to break above several resistance levels to confirm the pattern.
Given current market conditions, $ADA would need a bullish nudge to overcome these barriers. It could either come from a broader bullish market development or an optimistic ecosystem update. Meanwhile, the latter would still need a stable market condition to catalyze an $ADA resurgence.
Moreover, the analyst emphasized that this opportunity is for spot trading. This might suggest that it would require patience to materialize amid the uncertain market conditions.