Cardano (ADA) faces short-term bearish signals, according to crypto analyst Nick Regan’s technical analysis. Despite immediate downside risks, Regan forecasts a potential long-term rally to $38 for the digital asset.
His analysis examines ADA’s price movements across multiple timeframes. Additionally, Regan identifies key resistance levels and support zones, suggesting strategic entry points for those looking to capitalize on Cardano’s future growth.
Cardano Price Analysis
Regan’s analysis of the 1-hour and 4-hour charts reveals a key resistance for ADA. The crypto faces rejection at the 200-hour Exponential Moving Average between $0.343 and $0.344. This resistance, coupled with declining volume, indicates weak buying pressure.
Additionally, technical indicators point towards bearish sentiment. The stochastic Relative Strength Index shows overbought conditions on the 4-hour chart. Regan suggests this signals a likely downward correction in the near term.
Given the current market conditions, Regan advises caution for traders. He recommends considering short positions if ADA fails to break above the 200-hour EMA. The analyst suggests setting stop losses just above the previous high and using trailing stops.
For potential downside targets, Regan identifies the $0.23 to $0.25 range as the next support level. However, he emphasizes that this short-term bearishness presents opportunities for strategic buying.
Read also: These Indicators Point to Solana (SOL) Price Crash, Warns Analyst
ADA Price Prediction
Despite the bearish perception in the near term, Regan remains optimistic about Cardano’s long-term potential. He identifies the $0.25 to $0.42 range as an ideal zone for dollar-cost averaging into ADA. This strategy is particularly recommended for long-term investors.
Looking ahead to 2025, Regan anticipates a bullish move for Cardano. He draws parallels to the 2020-2021 rally, projecting potential highs between $5 and $12. In a more optimistic scenario, he even suggests the possibility of ADA reaching $38.
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Regan emphasizes that the current market volatility creates opportunities for strategic investors. He states, “Despite all of our expectations of this move to the downside…ultimately, this is huge opportunities for dollar cost averaging.”
The analyst’s long-term projections are based on historical patterns. Regan explains, “If we take a look at our weekly chart, you can really see how this is scaling out in the moves that we saw in 2020 and 2021. It was a five-wave structure, and that is what we’re going to be looking for in 2025.”
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The post Is The Cardano Price in Trouble? Expert Eyes ADA’s Potential Rally to $38, But There’s a Catch appeared first on CaptainAltcoin.
