An analysis by Nick Reagan provides insights into Cardano’s (ADA) potential price movement. The technical breakdown suggests a bullish reversal may be underway, driven by a breakthrough in its price structure.
Reagan highlights key indicators pointing toward a potential rally soon but with caution for short-term corrections.
What you'll learn 👉
Breakthrough Signals a Shift in Trend
Reagan’s analysis focuses on ADA’s recent price movement, marking the break of a key resistance level at $0.3658. This breakthrough ended an irregular flat correction, a signal of potential upward momentum.
According to Reagan, the confirmation of this pattern suggests that ADA may be entering a bullish phase. The Elliott Wave Theory plays a role in this analysis, with the chart showing a completed three-wave structure.
Reagan projects that ADA could target price levels between $0.3734 and $0.3854, based on Fibonacci retracement levels. However, he notes the possibility of short-term pullbacks due to current momentum indicators showing overbought conditions.
Momentum Indicators and Short-Term Outlook
The momentum behind ADA’s price movement has interested many traders. Reagan observes that while ADA has seen an increase in volume during its recent upward movement, momentum indicators are signaling potential exhaustion.
Time frames such as the 4-hour and 8-hour charts show overbought conditions, raising the likelihood of a short-term price correction.
Despite this, Reagan remains optimistic about the longer-term trajectory of ADA. He identifies key accumulation zones between $0.2903 and $0.3437, suggesting that investors may find buying opportunities if ADA retraces to these levels.
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Resistance at EMA and SMA Levels
Cardano’s battle with resistance at the 50-day EMA and SMA levels is another factor to consider. Reagan notes that while ADA faces challenges at these levels, the 200-day EMA remains intact, indicating strong long-term support.
This resistance, coupled with declining volume, adds to the expectation of short-term pullbacks before further upward momentum. Looking ahead, Reagan projects that ADA could see price increases by 2025, potentially reaching between $5 to $122.
However, a larger correction is anticipated before these levels can be achieved. Reagan also discusses market sentiment, noting that bearish narratives around Cardano as a “ghost chain” might cause retail investors to miss out on current accumulation opportunities.
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