Is the 35% Surge in Cardano Just the Beginning? ADA Price Forecast

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 examined the recent price action of Cardano (ADA), highlighting key support and resistance levels that could influence the token’s near-term movement.

Cardano’s Recovery From Key Support

After finding support at the 200 EMA on the hourly chart, the price began to recover. The rally started when the 50 EMA was breached, pushing the price toward the 50 SMA.

The price peaked at $1.12 before retracing. Analysts are watching to see if the Fibonacci 1.236 level, around $0.923, provides support. The 200 EMA on the 4-hour chart, now at about $0.935, also offers support.

At the time of writing, the price is testing the 50 EMA again. A break above the 50 EMA could spark another leg up toward the $1.00 level, which is closely followed by the $1.07 – $1.09 range. Afterward, a major resistance zone lies at the $1.24 Fibonacci level.

Technical Analysis of Cardano

Stochastic RSI on the hourly chart has entered the oversold zone, suggesting a possible bounce. Meanwhile, the MACD histogram shows a bullish crossover, indicating that the coin is gaining momentum. However, a slight bearish divergence appears on the 4-hour chart, which could put a damper on the mood.

In the short term, expect a small bounce before another test of lower support at the 200 EMA. In the long term, there is still potential for upward pressure if the price manages to stay above the $1.24 level.

If the price drops below the 200 EMA, the next crucial support level is at $0.65. A deeper loss could occur if this level is not maintained.

At the time of writing, ADA is trading at $0.9307, down about 5% over the past day but up over 38% for the week.

Entry: $0.99396

Stop Loss: $0.8515

Target: $1.07 – $1.09

Risk to Reward: 1.5:1

The broader outlook suggests that ADA is still in an accumulation phase, similar to previous market cycles.

For those interested in staking ADA, Regan suggests delegating to the Cheeky Crypto stake pool due to the lack of lock-up periods and the potential for passive income.

In his conclusion, Regan notes that the long-term outlook for ADA remains bullish, with future market cycles setting targets at $4.65 and $9.25.