ADA Price Falls Sharply Yet Maintains Top 10 Crypto Rank
Cardano (ADA) Price Continues to Perform volatilityDespite falling more than 18% in the past seven days, it remains among the top 10 cryptocurrencies by market capitalization. The recent downtrend was marked by bearish technical indicators, including a death cross on the EMA line and a weak position on the Ichimoku cloud.
However, there are some signs that the bearish momentum may be slowing, with ADA’s ADX declining slightly after peaking earlier this week.
Cardano downtrend remains strong but may be losing momentum
The ADA Average Directional Index (ADX) is currently at 27.5, up from below 20 on December 19, but has fallen slightly from above 30 in recent days. This move in ADX reflects changes in strength Cardano The downward trend continues.
While ADX above 25 usually indicates a strong trend, a small dip suggests that the downtrend may be losing some momentum, although it is still significant.
ADX measures the strength of a trend, regardless of its direction, on a scale from 0 to 100. Values above 25 indicate a strong trend, while values below 20 indicate a weak or non-existent trend. and Cardano ADX sits at 27.5 and is trending slightly downward, suggesting that while the current bearish momentum remains, its strength may be waning.
In the short term, this may result in less selling pressure, allowing ADA price Consolidate and even attempt a small recovery. This will depend on whether buying activity increases to offset the bearish trend.
Ichimoku Cloud shows negative emotions
Ichimoku Cloud Atlas ADA Indicates a bearish trend. Price is below the clouds (red and green shaded areas), indicating continued downward momentum.
The blue conversion line (Tenkan-sen) remains below the red baseline (Kijun-sen), confirming that bearish sentiment dominates the market. However, the narrowing of the gap between these lines suggests that the bearish momentum may slow if prices stabilize further.
The lag span (green line) is below the price and cloud, emphasizing the continuation of the bearish trend. Additionally, the Future Cloud (red) indicates continued bearish pressure. This happens because leading span A (green edge) remains below leading span B (red edge).
These conditions point to a bearish environment for ADA, with limited signs of an immediate trend reversal unless further consolidation occurs.
ADA Price Prediction: Will Cardano Return to $1?
The ADA EMA line formed a death cross on December 20, with the short-term EMA lower than the long-term EMA, which is a classic bearish signal and indicates continued downward momentum. If this downward trend continues, cardano price It could face further losses, possibly testing support at $0.78.
If bearish pressure persists and $0.78 fails to hold, ADA price A further drop to $0.65 or even $0.519 is possible. This could mark a potential retracement of 42% from current levels.
However, if the trend reverses and bullish momentum builds, ADA price A retracement of higher levels is likely, with resistance at $0.99 and $1.039.
A break above these levels would indicate stronger buying interest and could pave the way for a rally towards $1.18. This implies a potential upside of 31% from current levels.
Disclaimer
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