Analyst Predicts Key Breakout and Buying Opportunities for Cardano (ADA)

• Cheeky Crypto sees ADA’s retracement to $0.372-$0.397 as a turning point, projecting a breakout to $0.47.
• ADA’s oversold status and low volumes suggest a buying opportunity, indicating a potential price rebound.
• SEC’s ruling that ADA is not a security offers hope despite ongoing bearish trends and market challenges.

Renowned crypto analyst Cheeky Crypto provided an in-depth analysis of Cardano’s ADA, detailing key price movements and future projections. In a recent YouTube video, the analyst covers short, medium, and long-term ADA predictions, offering investors valuable insights.

Based on analyst findings, there has been a recent retracement to the range of $0.372 to $0.397. He identifies this zone as a potential turning point and a good opportunity for long positions, recommending a tight stop loss of around $0.361. He projects an upward breakout to at least $0.47, suggesting a risk-to-reward ratio of approximately 4.17.

The analyst also highlights that ADA’s recent market sell-off has led to it being oversold across various time frames, signaling a potential buying opportunity. The decreasing volumes during the correction phase suggest limited selling interest, reinforcing the likelihood of a price rebound.

On a weekly scale, the analyst has been tracking ADA’s Wave 2, marking it as an ideal period for dollar-cost averaging ahead of a substantial upward move. He foresees a significant rally, with ADA potentially reaching $0.67 or higher, depending on the completion of subsequent wave patterns.

Long-term projections remain optimistic, with conservative targets ranging between $5.34 and $12.73. The analyst also predicts the possibility of ADA reaching $38, though he cautions that this could take several years, possibly extending to 2027 or beyond.

Despite recent recoveries, ADA remains well below its previous highs. Major trading platforms like Binance and OKX show rising negative funding rates, indicating a persistent bearish trend. This ongoing selling pressure suggests a continued downturn.

The U.S. Securities and Exchange Commission (SEC) has  hinted that ADA is not considered a security, which is a positive development. This regulatory clarity offers hope for ADA’s future amidst current challenges.

In the last 24 hours, the ADA price dropped by 2.52% to the price of $0.3936 at press time, and further declines are possible if market conditions do not improve. The ADA analysis shows a pattern of lower highs and lows, with the price trading below the 50-day and 200-day EMAs. The crucial support level is around $0.30, and if bearish momentum continues, ADA could fall to its yearly low of $0.3165.

Meanwhile, renowned analytical platform Santiment highlights a spike in negative funding rates, which could sometimes signal an oversold condition. Historically, such conditions have led to sharp recoveries as sellers are forced to buy back at higher prices. However, this strategy requires caution as prices could continue to drop if the market views ADA as excessively oversold.