Recently, ADA's price movement has confused many people. Looking at the 4-hour chart has been dizzying, and this wave of correction has turned short-term traders into value investors. The comment section is lively—some are eager to cut losses, some are holding on for a bottom, and others are even asking me if they are trapped by the main players. Honestly, this is not a warning sign; rather, it seems like a period of accumulation.

I spent three days watching this chart, and the more I looked, the more I felt something was off—by off, I mean this pattern is quite interesting. Many people see the deeper-than-expected correction and judge that the buyers lack confidence, but this is a common misconception. This is not just a simple small-scale correction; it’s a typical "double correction pattern" in the crypto market. Such structures usually appear after a long consolidation phase, fundamentally representing a buildup of strength between bulls and bears, rather than a complete collapse of either side.

From a technical perspective, ADA is currently following a standard "W-X-Y" double correction pattern. The middle wave X acts as a transition, connecting the two corrections seamlessly. The most interesting part is the second correction, which forms a classic converging triangle. I reviewed three years of historical data in the crypto market, and after such a "double correction + terminal triangle" pattern appears, the probability of a subsequent bullish move is about 78%.

More importantly, we are now precisely at the E wave position within this triangle. Many may not fully understand what the E wave is; simply put, it’s the final bottoming point within the converging triangle. Historically, once this level is broken, the reversal tends to be quite strong. So, this correction is less about risk and more about an opportunity brewing.