The recent dip in Cardano’s price to near $1 has left investors questioning whether it is still a wise investment as the price continues to decline. ADA’s price is now down by around 25% in the last seven days. Crypto YouTuber Nick Regan addresses the sharp price drop and whether now is the right time to buy the dip.
Cardano (ADA) Price Analysis Indicates Fake-Out
Crypto analysts had initially predicted an upward movement for ADA price targeting between $1.38 and $1.47. However, the anticipated bullish momentum was short-lived, as the market took a downturn.
The analyst provided technical insights to explain Cardano’s recent price performance, focusing on wave structures and patterns. Initially interpreted as a bullish expanding diagonal, the analysis suggested that the price action may instead reflect a corrective overlap rather than a clear bearish trend.
The current downward movement appears more aligned with corrective patterns than a long-term bearish breakdown. Regan noted the possibility of a “fake-out,” indicating that this drop might not signify a sustained downtrend.
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Investor Sentiments and Strategy
He presented the current market conditions as a golden opportunity for dollar-cost averaging, allowing investors to strategically accumulate ADA at lower prices. Regan emphasized the importance of emotional resilience as the market navigates corrections and volatility.
The analyst noted several key indicators that support the idea of a potential recovery. The Relative Strength Index (RSI) indicates oversold conditions across various time frames, including the 4-hour, 12-hour, and daily charts, suggesting an impending price rebound.
Additionally, the Moving Average Convergence Divergence (MACD) analysis reveals signs of bullish divergence, even amid selling pressure, further reinforcing the recovery outlook.
Despite the recent downturn, long-term prospects remain optimistic. The analysts anticipate a potential retracement to critical support zones between $0.92 and $0.81. Looking ahead, projections indicate a bullish trajectory, with the ADA price expected to align with macro targets ranging from $5 to $12 by 2025.
