Cardano’s price action has seen the token’s value climb over 35% lately. Could this be the beginning of something bigger, or just another flash in the pan?
Analyst Nick Regan broke down the numbers behind ADA’s movement, highlighting critical price points that could make or break this rally. His analysis focused on where the coin might face resistance as it climbs and what the charts suggest about momentum.
The price action has been particularly strong lately, with technical indicators offering clues about where Cardano might head next. However, signs of a possible pullback remain as traders assess risk levels.
What you'll learn 👉
Cardano Price Action and Key Support Levels
ADA has found solid support at the 200 EMA on the hourly chart. Regan noted that the rally began after breaking through the 50 EMA, pushing the price toward the 50 SMA. The price peaked at $1.12 before retracing, with analysts monitoring whether key levels hold.
Support remains at the 50 EMA near $0.935, the Fibonacci 1.236 level at $0.923, and the 200 EMA on the 4-hour chart. Resistance is about $0.95 and $1.00, with another barrier at the $1.07 – $1.09 range. A major resistance zone is also identified at the $1.24 Fibonacci level. Regan emphasized that stability at these support levels could signal another leg upward.
Technical indicators suggest mixed signals. The stochastic RSI on the hourly chart is in oversold territory, indicating a possible bounce. Meanwhile, the MACD histogram has formed a bullish crossover, reinforcing upward momentum. However, Regan pointed out that a slight bearish divergence appeared on the 4-hour chart, signaling caution.
Short-term projections suggest a small bounce before another test of lower support at the 200 EMA. Long-term upward pressure above $1.24 is still possible if ADA stays above $0.92. With $0.65 serving as a crucial support level, a deeper loss could result if this level is not maintained. At press time, ADA trades at $0.9307, down about 5% in the past day but up over 38% for the week.
Trading Strategy and ADA Price Prediction
Regan outlined a trading strategy with an entry at $0.99396, a stop loss at $0.8515, and a target between $1.07 and $1.09. The risk-to-reward ratio stands at 1.5:1. The broader outlook suggests ADA is still in an accumulation phase, mirroring previous market cycles.
For long-term holders, staking remains an attractive option. Regan recommended delegating ADA to the Cheeky Crypto stake pool, highlighting the absence of lock-up periods and the potential for passive income. He maintained that ADA’s long-term trajectory remains bullish, with targets set between $4.65 and $9.25 in future market cycles.
Short-term expectations point to a potential bounce before another pullback. Resistance remains at $1.07 – $1.09 and $1.24. Long-term trends suggest ADA is on track for further gains, but risks persist. If the price breaks below $0.92, a deeper correction could lead to $0.65. Despite these risks, Regan remains optimistic, stating that ADA’s structure still aligns with long-term growth expectations.
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