Cardano’s ADA token has declined lately, losing 10.52% of its value since December 24, according to crypto analyst Nick Regan. His analysis focuses on short-term and long-term price movements, offering insights into potential trends and key price levels.
Per CoinGecko data at press time, ADA is trading at $0.8713, a 3.70% dip in the last day and a 10.06% drop over the past week. The analysis aims to provide clarity on ADA’s immediate and future price trajectories.
Cardano’s Technical Indicators Suggest Further Downside
Regan’s technical analysis highlights a continuation of the downward trend. On the 1-hour chart, the support level is at $0.7620, with resistance emerging near the 50 EMA and 50 SMA. Previously established support levels are turning into resistance, indicating bearish momentum.
The Fibonacci retracement tool pinpoints potential short-term targets between $0.7890 and $0.8183. Regan predicts another downward move before stabilization. He noted,
“This pull to the downside is not yet complete. I anticipate another run lower before we see stabilization.”
Momentum indicators, including the MACD histogram, reflect increasing volume but suggest likely rejection near the resistance zones. Overbought momentum conditions further support the potential for additional corrections.
Shorting ADA: A Strategic Opportunity
The analysis suggests a shorting strategy for traders. Regan recommends entering a short position near $0.8818, with a stop loss set at $0.9260 and a target at $0.8140. He emphasized that this aligns with Fibonacci levels and momentum indicators.
According to Regan, ADA is in the corrective phase of a larger downward move. The anticipated five-wave structure is expected to complete before a potential upswing begins.
Read also: Expert Charts XRP’s Price Path to $8.67 – Here’s the Outlook
Long-Term Projections and Risks
On a daily time frame, ADA appears to be in Wave 2 of a larger Wave 5 structure.
Regan’s analysis projects a target range between $1.51 and $1.88, contingent on breaking critical Fibonacci levels at $1.38 and $1.67. A failure to surpass $2.27 could result in a diagonal price structure, which could lead to prolonged volatility.
He stated, “Failing to hit $2.27 puts us in a diagonal pattern—an emotional roller coaster for Cardano fans.”
While the immediate outlook for ADA points to further declines, the long-term view suggests potential recovery toward higher price levels. Watching critical resistance zones and assessing the price action for signs of a breakout above $1.67 to confirm bullish momentum will be crucial.
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