Has Cardano (ADA) Price Already Peaked This Bull Cycle?

An analysis by crypto expert Nick Regan suggests that Cardano (ADA) may face bearish pressure in the short term, despite potential for a brief upward movement.

Cardano (ADA) price has followed a fluctuating trend recently. According to Regan's analysis, ADA attempted a move higher on the 1-hour chart but encountered resistance at the 200-hour Exponential Moving Average (EMA). This rejection occurred between $0.03397 and $0.0346.

After the rejection, ADA experienced a bear market breakout around 0600 hours, which was followed by a three-wave correction. This correction tested previous lows in the $0.03254 to $0.03287 range. The Stochastic Relative Strength Index (RSI) is currently showing overbought conditions on shorter timeframes, indicating potential downside momentum.

U.S. The Federal Reserve's interest rate decisions contributed to broader market conditions affecting the price of ADA. These macroeconomic effects have created an overall bear market sentiment in the crypto market.

Regan has a pessimistic outlook for ADA, viewing the current price action as part of a larger corrective phase. However, he does acknowledge the possibility of a brief move to the upside before a more significant bear market move.

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Also read: Is Solana (SOL) Price Ready for a $800 Move?

Trading Strategies and Price Projections

Regan highlighted several profitable trading opportunities from previous price movements, including bull market divergences and successful breakouts above locked moving averages. The current strategy involves waiting for an upside move before considering short positions on ADA.

On a daily time frame, Regan expects ADA to test towards $0.025 levels. The price is currently below several important moving averages, further supporting the bear market trend. Despite short-term bull market momentum, declining volume and lack of buying pressure suggest ADA may have difficulty sustaining the uptrend.

Regan recommends placing stop-loss orders slightly above key resistance levels, especially around $0.0365. Despite the short-term bear market outlook, he sees current price levels ($0.02563 to $0.04224) as attractive for dollar-cost averaging and building long-term positions.

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