Cardano (ADA) price is up 193.65% in the past 30 days and 37.82% in the past week. Despite this rally, indicators suggest that ADA’s uptrend may be weakening. The ADX, which measures trend strength, has fallen from over 60 to nearly 45, signaling a decline in momentum.
With whale accumulation stabilizing and prices approaching key EMA levels, ADA faces a critical juncture. Thus, the altcoin could retest its 2021 high or a potential 48% correction if selling pressure increases.
Uptrend appears to be losing steam
Cardano’s ADX currently sits at nearly 45, having fallen from over 60 a few days ago. The Average Directional Index measures the strength of a trend, with values above 25 indicating a significant trend and values above 40 suggesting a very strong trend.
While an ADX of 45 still reflects strong momentum, a drop to 60 signals a weakening in the trend's intensity, even if the direction remains unchanged.
ADX ADA. Source: TradingView
ADA is currently in an uptrend, supported by its directional indicators. The drop in ADX suggests that while the uptrend remains strong, the bullish momentum has started to lose some of its strength. If ADX continues to fall, it could indicate that the current trend could stabilize or reverse if selling pressure increases.
However, with ADX still well above 25, the trend remains significant, and Cardano price is likely to maintain its bullish bias in the near term unless further weakening occurs.
Cardano whales have stopped accumulating
Whales began accumulating Cardano heavily from November 10, with the number of wallets holding between 10 million and 100 million ADA increasing from 398 to 408 by November 15. Tracking whale activity is crucial as these large holders often have the power to significantly influence market trends.
Their buying behavior may indicate growing confidence in the asset and potentially drive price increases, while their selling may trigger downward pressure.
ADA addresses between 10,000,000 and 100,000,000. Source: Santiment
Since November 15, the number of these whale wallets has stabilized, hovering between 407 and 409. This consistent accumulation suggests that whales are holding onto their positions, reflecting a neutral to bullish sentiment.
If whales maintain their holdings without significant additions or reductions, the ADA price may experience less volatility, with the market awaiting new catalysts for the next directional move.
ADA Price Prediction: 2021 Bullish or a Strong Correction?
Cardano’s EMA lines continue to reflect a bullish setup, with short-term lines positioned above the long-term ones. However, the current price is no longer significantly above the short-term EMA lines, indicating that momentum has weakened.
This proximity suggests that the uptrend is losing steam, and the ADA price is approaching a critical point where it could either bounce back or fall below these lines, signaling a possible trend change.
ADA Price Analysis. Source: TradingView
If the uptrend regains momentum, ADA price could test levels above $1.155, potentially reaching $1.16, its highest price since March 2021. However, as indicated by the decline in ADX, the current uptrend is losing momentum, increasing the likelihood of a reversal.
If the trend turns bearish, ADA’s closest support is at $0.519, which would represent a significant 48% correction from current levels.
The article Cardano Up 193%, But Signs Point to Weakening Rise appeared first on BeInCrypto Brasil.
