ADA Price Stabilizes as Whales Hold Positions Steady
Cardano (ADA) has had a rough month, down more than 20% in the past 30 days, but it remains a top 10 cryptocurrency by market capitalization. Technical indicators, including the ADX, point to weak trend momentum since December 24, suggesting that the downtrend lacks the strength to make large price moves.
ADA is currently trading between the key levels of $0.78 support and $0.87 resistance. Its next move depends on whether these levels hold, with potential outcomes including a sharp correction or a bounce back to $1.04.
ADA ADX shows downtrend no longer strong
cardano ADX is currently at 11.49, reflecting the weaker trend strength, having remained below 20 since December 24th. This lower ADX reading points to a lack of momentum in the current downtrend, suggesting that while ADA is still facing bearish pressure, the downward selling force behind the price has weakened.
This could signal a period of consolidation in the near term, as the trend is still not strong enough to drive significant price moves.
The Average Directional Index (ADX) measures the strength of a trend, whether up or down, on a scale from 0 to 100. Values above 25 indicate a strong trend, while readings below 20 e.g. ADA The current level of 11.49 indicates that the trend is weak or non-existent.
In the context of a downtrend, a lower ADX reading means that the bearish momentum is not firmly sustained yet, which may limit further price declines unless selling pressure increases. If ADX does not rise to confirm stronger trend dynamics, the price of ADA may continue to trade sideways or experience only minor fluctuations in the short term.
Cardano whale doesn’t move much
The number of addresses holding between 10 million and 100 million ADA has remained stable since December 18, fluctuating slightly between 407 and 404. Prior to this, there was a significant increase in these addresses from 400 to 409 between December 10 and December 14, indicating that the whale population was increasing. Buy Cardano during that period.
The stabilization of whale activity since then suggests that major investors are neither heavily adding to nor selling their positions, reflecting a cautious stance.
Tracking whale activity is crucial as these large holders often have considerable influence on the market. Their accumulation often signals confidence in an asset and can push prices higher, while distributions often bring selling pressure.
Currently stable at ADA Whale numbers indicate neutral sentiment among these investors, which could mean limited volatility In the short term. Unless whale activity turns to heavy accumulation or distribution, the price of ADA is likely to remain range-bound or experience only minor fluctuations in the coming days.
Cardano Price Prediction: Can ADA Return to $1?
cardano price It is currently trading between resistance at $0.87 and support at $0.78. If support at $0.78 fails to hold, ADA price It may face a sharp correction, possibly falling to $0.519, a drop of 38%.
On the contrary, if ADA price A successful test and breakout of the $0.87 resistance could signal a shift to bullish momentum. In this case, the price could climb higher to test the next resistance at $1.04, with a potential upside of 23.8%.
Disclaimer
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