Cardano (ADA) in danger? Analyst predicts a possible correction soon

Cardano (ADA) is trading near $0.4 while analysts are tracking a potential correction wave and a bullish cup-and-handle pattern targeting $0.52.

Meanwhile, the token remains the 12th largest cryptocurrency, with a market cap of over $14.4 billion and a circulating supply of 37 billion ADA. While sentiment remains mixed, recent chart patterns are turning heads.

Analyst sees possible correction ahead

Chart analysis of Man of Bitcoin suggests ADA may still be in a corrective phase. According to the shared wave count, the first one has been completed and the current move could be part of a larger wave (2) correction. The assets are hovering below the $0.438 level, which the analyst considers important.

“As long as the price remains below $0.438, my preference is for a larger ABC correction in wave-(2),” the analyst wrote.

If that view holds, the next leg could send the price lower, possibly towards the $0.379 to $0.345 zone. These areas could provide support, but any decline below would weaken the short-term structure.

On the weekly chart, ADA continues to trade within a symmetrical triangle. The lower support trendline around $0.39 has been tested several times but has not been broken. The upper trendline remains untouched, leaving the structure tight and undecided.

The price is still below the major moving averages. This keeps the broader trend cautious. The MACD also shows weak momentum, with the signal line remaining above the MACD line and the red histogram bars continuing. For now, sellers remain active, but the pressure has not increased.

Bullish pattern arises under resistance

At the same time, according to analyst Ali Martinez, a cup-and-handle pattern is forming on lower time frames. This pattern is considered bullish if confirmed. The neckline is around $0.423. If the price breaks above this level, the next target could reach $0.517. The handle section forms between $0.387 and $0.404.

You might also like:

Cardano $ADA could form a cup-and-handle.

A break above USD 0.423 could open the door to USD 0.517. pic.twitter.com/A0YldAVGzE

— Ali Charts (@alicharts) January 15, 2026

Interestingly, this structure and its similarity to historical structures led to rallies in other markets. The pattern remains valid as long as the price remains above the handle range.

Despite the recent dip, data from the chain points to reduced sales pressure, as previously reported. Currency flows show that more and more ADA are moving off the platforms, which is usually a sign of investor confidence. CoinMarketCap’s data shows that ADA is one of the most positively rated coins based on community sentiment.

Meanwhile, CME Group is prepare to list ADA futures, which are expected to begin trading on February 9, pending approval. This puts Cardano alongside other major altcoins already available in the US derivatives markets.