Cardano (ADA) Price Drops 20% This Month, ADX Shows a Stagnant Market at 11.49
Major ADA investors have been inactive, whale addresses are stable, and there is a cautious attitude from major investors. ADA is currently trading between the 0.78% support and 0.87% resistance levels, with potential moves to 0.519% or 1.04%. Cardano (ADA) has been having a tough month, losing over 20% in the last 30 days. However, it is still among the top 10 cryptocurrencies by market cap. ADX and other technical indicators have been pointing to weak trend momentum since December 24, suggesting that the current downtrend is not strong enough for major price movements.
ADA Trades Between $0.78 Support and $0.87 Resistance Levels
ADA is currently trading between the $0.78 support and $0.87 resistance levels. In the upcoming period, it will be decisive whether these levels will be maintained and the price will either experience a sharp correction or rise towards $1.04. Price movements will take shape between these two possibilities.
ADX Downtrend No Longer Strong
Cardano’s ADX value currently stands at 11.49 and has remained below 20 since December 24, indicating weak trend strength. This low ADX level indicates that the current downtrend lacks strong momentum. This suggests that although ADA is still under downward pressure, the selling force driving the price decline has diminished.
This development could indicate the potential for price stagnation in the short term, as trend strength is not strong enough to drive significant price movements. The Average Directional Index (ADX) assesses the strength of a trend, with readings above 25 indicating a strong trend, while readings below 20 indicate a weak or absent trend. ADA’s current level of 11.49 is indicative of a weak trend.
In the context of a downtrend, this low ADX reading means that bearish momentum is not strongly established, suggesting that further price declines are likely to be limited unless selling pressure increases. Without an increase in ADX, the ADA price is likely to continue moving sideways or experience only minor fluctuations.
Cardano Whales Are Not Moving
The number of addresses holding between 10 million and 100 million ADA has remained stable since December 18, fluctuating between 407 and 404. This comes after a significant increase between December 10 and 14, when these addresses rose from 400 to 409, a period during which whales were seen buying Cardano. However, there has been no major change in whale activity since then, suggesting that large investors are taking a cautious stance and are not significantly increasing or decreasing their positions.
Whale activity is a key indicator that can have a major impact on the market. Accumulation usually signals confidence in the asset and can push prices higher, while distribution increases selling pressure. Currently, the stability in ADA whales reflects a neutral sentiment, which could indicate limited fluctuations in the short term. Unless there is a major accumulation or distribution of whale activity, the ADA price could remain within a narrow range.
Cardano Price Prediction: Will ADA Head for $1?
Cardano price is currently trading between the $0.87 resistance and the $0.78 support. If the $0.78 support is broken, ADA could drop by 38% to $0.519. On the other hand, if ADA successfully clears the $0.87 resistance, it could be a sign of bullish momentum. In this case, the price could test the next resistance level at $1.04, which offers the potential for a 23.8% upside.