## Elliott Waves Could Spark a Historic Rally in Cardano

Technical analysts detect bullish signals suggesting that Cardano (ADA) could experience a significant move in upcoming cycles. According to projections, the token would reach unprecedented levels if the five-wave Elliott pattern is completed, representing an increase of over 700% from its previous high of $3.09.

At the time of analysis, ADA is trading at $0.39, after losing 55% since early 2025. However, market observers consider that the current selling pressure is simply a temporary corrective phase within a long-term cycle.

### Technical Analysis: The Role of Elliott in the Bullish Projection

The structure presented by Cardano reveals a classic five-wave Elliott pattern initiated in September 2023 from the support zone. The first impulsive wave pushed the price up to $1.32 in December 2024, at which point the second corrective wave began.

Currently, the market is close to completing this corrective phase, with the price testing levels between $0.37 and $0.39. Experts suggest that the third wave of the Elliott cycle could be the most explosive, with potential to reach new all-time highs above $3.10.

In the ADA/BTC chart, there are also signs of a trend reversal. Although Cardano has shown relative weakness against Bitcoin in recent periods, analysts point out that the all-time highs of this cycle could push it into double-digit valuations if the pattern completes satisfactorily.

### The Stablecoin Push: Ecosystem Catalyst for 2025-2026

Beyond technical analysis, the Cardano Foundation has announced significant initiatives to promote global adoption of the ecosystem. The central strategy includes injecting liquidity through stablecoins backed by reserves, strengthening penetration into the decentralized finance market.

These efforts aim to solve a historic challenge: the lack of working capital and user attraction in Cardano’s DeFi protocols. Promoting stablecoins is shaping up as the fundamental pillar of the value proposition for 2025 and 2026, potentially catalyzing greater institutional and retail adoption.

### Market Perspective

The convergence between technical confirmation (Elliott waves completing) and fundamental development (stablecoin expansion) suggests a scenario where Cardano could regain relevance. However, volatility will continue to be a characteristic of the crypto market, and investors should exercise caution in their entry strategies.