Cardano (ADA) has experienced a significant surge of over 100% in the past month but has seen a slight decline of nearly 4% in the last week, indicating short-term selling pressure in the market. However, despite this recent dip, there are signs that the cryptocurrency may be poised for a potential recovery. The sharp correction that occurred from December 7 to December 10 has now eased, with ADA’s Average Directional Index (ADX) dropping to 21.4, indicating a weakening trend strength. This suggests that the strong downtrend that was previously seen in ADA has faded away.
The ADX measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 suggesting a lack of a clear direction. With ADA’s ADX now sitting at 21.4, it is in a neutral zone, indicating consolidation in price movement. This implies that while the previous downtrend has subsided, there is no strong upward or downward trend that has emerged, leaving ADA’s price movement uncertain in the near term.
One key indicator to watch in the Cardano market is the activity of whales, or large holders of the cryptocurrency. Between December 7 and December 10, there was a sharp decline in the number of wallets holding between 10 million and 100 million ADA, suggesting that large holders were reducing their positions during the correction. However, there has been a resurgence in the number of wallets in this category, now sitting at 405, which could indicate renewed confidence among major holders. This renewed accumulation by whales may signal potential price stability or even a recovery for ADA in the near future.
In terms of price prediction, after losing support at $1.15, Cardano price dropped to $1.10. While there is no strong trend indicated by the EMA lines, the ADX at 21 suggests that the strength of the recent correction has diminished. If a new downtrend were to emerge, ADA price could test support at $1.03, with a potential further drop to $0.87. On the other hand, if Cardano were to rebound, it could test resistance at $1.24, with the possibility of reaching $1.32 if that level is broken.
Overall, while Cardano has experienced some short-term selling pressure recently, there are indications that the strong downtrend is fading away and that a potential recovery may be on the horizon. With whales accumulating ADA once again and the ADX signaling consolidation, the future price movement of Cardano remains uncertain but potentially promising. As investors keep a close eye on these key indicators, the next moves in the Cardano market will be closely watched to see if the cryptocurrency can regain momentum and potentially reach new highs in the near future.
