Cardano just experienced a sharp drop, with the ADA price falling around 11.7% yesterday. This recent dip has put ADA back under some important support zones that had previously helped keep its bullish momentum alive.
According to a breakdown by Nick Regan on his YouTube channel, this decline wasn’t entirely unexpected. He pointed out last week that a bearish structure was taking shape and warned of a potential correction. As Bitcoin began to pull back, it pulled the altcoin market with it, and Cardano was no exception.
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Cardano Price Drops Below Support as Selling Pressure Mounts
On the 4-hour chart, Nick Regan highlighted that Cardano broke its rising trendline and fell below the $0.72 support zone. That level had recently served as a short-term base for the bulls, but with it now broken, the next key level to watch is around $0.68. That’s the area where previous buyer interest emerged. What’s more concerning is that the red volume candles are growing, which typically signals increasing sell-side momentum.
He also explored the possibility that this move is part of an ABC corrective structure. According to him, wave A took ADA down to $0.70, wave B saw a short bounce back to $0.74, and the current wave C is taking ADA even lower. If this structure holds, we could see another push to the upside after this dip. But if $0.68 breaks down completely, then this could morph into a much deeper bearish wave.
Despite the recent weakness, Nick remains cautiously optimistic about Cardano’s outlook in 2025. He emphasized that corrections like these are part of the larger crypto cycle. As long as ADA does not fall below $0.58, he believes the macro uptrend is intact. In fact, if this current move is just a wave two correction, ADA could still potentially rally towards $3 or more next year.
Cardano Technical Signals Mixed as Traders Watch for Clarity
The 4-hour timeframe now shows ADA trading under its 200 EMA, a bearish sign in the short term. Nick explained that this could invite traders to consider short setups with stops above $0.74 and targets near $0.66 or lower. Momentum indicators like the MACD are confirming the trend shift, with the MACD line crossing below the signal line and the histogram weakening. At the same time, the 1-hour Stochastic RSI has crossed down from the overbought zone, suggesting a short-term reversal.
He also pointed to a potential macro X-Y corrective structure developing on the daily chart. If this plays out fully, the Cardano price could slip further into the $0.65 range before finding real support. However, the story isn’t all bearish. On the daily timeframe, the 50 EMA is approaching a crossover above the 200 EMA, a pattern known as a golden cross. While it’s typically seen as bullish, Nick reminded viewers that golden crosses tend to lag and usually confirm moves after they’ve happened.
$0.72 was previously a crucial level, with bulls stepping in repeatedly to defend it. Now that the price is below it, the same level becomes resistance. Regaining it could flip short-term sentiment, but until then, bears remain in control. He also noted that bearish divergence had formed on the RSI while the price was climbing, adding further warning signs.
Around $0.68, there’s what Nick called a “confluence zone” where the daily 200 EMA meets a horizontal support level. This could offer a short-term bounce opportunity if the right candles and volume appear. If that happens and ADA climbs back above $0.74, the next target for a swing trade would be $0.80 and potentially $0.94. That would complete a 1-2-3 wave structure up.
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Long-Term ADA Price Targets Still Reach As High As $12
Despite the noise in short timeframes, Nick Regan sees long-term potential for Cardano. Using Elliott Wave theory, he outlined a path where ADA could climb back to $3 in 2025. If network adoption and on-chain metrics improve, the Cardano price could even stretch toward $5 or $12 over the next few years. However, he cautioned that this is not an overnight move and will require patience.
He wrapped up the video with a few practical tips: always use stop losses, avoid going all-in on trades, and manage your risk.
Whether this is just a short-term correction or a deeper trend change remains to be seen, but for now, all eyes are on that $0.68 support zone as ADA’s next key test.
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