Fed Decision Looms: Will Cardano (ADA) Price Crash to $0.25?

Cardano (ADA) Price Outlook: Short-Term and Long-Term Analysis

Analyst Nick Regan has analyzed Cardano's (ADA) price movements, providing insights into its short-term and long-term prospects. Regan's analysis examines key technical indicators and market patterns.

ADA Price Movements and Resistance Levels

After dropping into a previously predicted price range, Cardano has experienced a modest relief rally. However, the upward momentum appears weak, with ADA currently facing resistance between $0.3397 and $0.346. These levels are critical for ADA to overcome to regain bullish momentum. Regan notes that further upward movement is uncertain, although a recent long trade targeting a 1.5 risk-reward ratio reached profit at $0.34.

The analyst also highlights important resistance areas, such as the 50 EMA and 50 SMA, which will play a significant role in determining whether ADA's price continues to rise or faces rejection.

ADA's Next Move

Regan presents both optimistic and pessimistic price forecasts for ADA. If ADA sustains its current support and breaks above the 50 EMA and 200 EMA, it may surpass significant resistance levels. This could potentially drive the price towards $0.34 to $0.345, initiating an upward trend.

However, if ADA fails to breach these resistance points, a bearish scenario could unfold, pushing the price down to $0.327 or even $0.25 in the worst-case scenario.

Market Volatility Due to Federal Reserve Decision

The upcoming Federal Reserve interest rate decision is expected to introduce volatility into the market, including Cardano. Regan points out that market participants anticipate a rate increase, which could lead to a relief rally followed by a potential "sell the news" situation.

ADA's price could fluctuate significantly depending on the rate decision: 0.25%, 0.5%, or even 0.75%. Regan remains optimistic about ADA's long-term prospects despite the current volatility. He suggests that anything below $0.42 represents a good range for DCAing for long-term investors. However, if short-term bearish movements prevail, ADA may need to retest support levels around $0.27 or $0.25. A breakout above $0.226 could signal a stronger bullish breakout.