Cardano (ADA) Dips 20% After Weekend Rally, Tests Key Support
Donald Trump has raised its price to more than $1.10 after announcing that the ADA will be included in the U.S. Cryptocurrency Reserve (ADA). This massive rally drives strong bullish momentum, with key indicators such as BBTREND and DMI confirming the strength of the uptrend.
However, this excitement seems to be disappearing, as ADA has since corrected it below $1, with technical signals indicating that sales pressure is increasing. As traders evaluate whether ADA can sustain its earnings or go into deeper answers, critical levels of support and resistance are crucial to identifying the next move.
Cardano Bbtrend shows sales pressure is getting stronger
Cardano experiences strong price gains It was formally included in the US crypto protected area. The sudden increase in demand caused the ADA’s BBTREND indicator to go from deep-14.5 to 7.1 in a few hours, indicating a change in momentum.
bbtrend, a volatility And trend-following indicators derived from Bollinger’s band, helping traders measure the intensity and direction of price movements.
When Bbtrend crosses above zero, it indicates a bullish trend, while a reading below zero indicates bearish momentum. Extreme values, such as 10 of -10 or above, usually emit an overstretching action that may be correct very quickly.
After that, ADA’s BBTREND reached 7.1, it reversed – back to -13.4, indicating that the initial excitement surrounding its inclusion in the U.S. cryptocurrency reserve has disappeared.
Such a rapid decline indicates that the bullish momentum has weakened significantly, and ADA may now face a period of answers or mergers.
Reading this low bbtrend is usually consistent with strong sales pressure, which may mean further disadvantages unless Fresh buying interest emerges. If the ADA fails to maintain critical support levels, its price may continue to decline, although the reversal of BBTREND toward neutral territory will indicate stability.
ADA DMI shows buyers are still in control
Cardano sees significant growth In terms of trend intensity, as reflected by its directional motion index (DMI). The average direction index (ADX), which measures trend intensity, rose from 28.3 to 43.7 after the announcement of ADA’s inclusion in the U.S. crypto reserves.
The uptrend of ADX over the age of 25 indicates that the trend is increasing intensity, while values above 40 usually indicate whether it is bullish or bearish.
ADX does not indicate the direction of the trend, but its strength, which is a key indicator to assess whether the movement is likely to continue or weaken.
In addition, the +DI (positive direction index) of ADA fell from 66.5 yesterday to 41, indicating that Bullish power has cooled down. Meanwhile, -di (negative direction index) rose from 4.7 to 14.1, indicating that the seller began to push backwards.
The combination of high ADX with decline + DI and upward-DI shows that while the trend remains strong, the bullish advantage is disappearing and sales pressure is increasing. If this trend continues ADA may face deeper answers or a transition to integration unless the buyer regains control.
Cardano will soon be below $0.80
yesterday, Cardano’s price surges by 60% After it is included in the U.S. crypto reserve, it will be promoted to over $1.10.
However, corrections have been made over the past few hours, and ADA has returned to the $1 level as the first purchase frantically faded out.
Technical indicators DMI and BBTREND indicate that the uptrend may lose momentum, thereby enhancing a deeper retracement. If ADA fails to maintain its current level and sales pressures are intensifying, you can test a support level of $0.90.
A failure below this could be a further drop to $0.81 and $0.65 losses, while a strong drop could bring the ADA to $0.50.
On the other hand, if the bullish momentum is rekindled, Cardano price may make another push highertest the resistance level of $1.16.
A breakthrough beyond the region will indicate a new intensity of intensity that could put the price up to $1.32, marking its highest level since early December 2024.
Whether the ADA maintains its upward trajectory or continues its pullback will depend on traders’ reaction to the recent price surge and whether fresh purchase interest can outweigh emerging sales pressures.
Disclaimer
and Trust Project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Beincrypto is committed to accurate and impartial reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions,,,,, Privacy Policyand Disclaimer Updated.
