Cardano ($ADA
) price is under sustained pressure, with multiple technical indicators pointing to a strong #BEARISH📉 trend.
The ADX indicator confirms the strengthening of the bearish trend recently, suggesting that sellers are dominating the Cardano market. The Ishimoku cloud and EMA lines also confirm this outlook. ADA is trading below key resistance levels and a death cross formation has recently appeared on the chart.
Cardano: strong current trend
The ADX indicator assesses the strength of a trend, and values above 25 usually indicate a strong trend. In the case of Cardano, the indicator rose to 36.76 against a value of 17 just a few days ago. This increase indicates that the current trend has strengthened.
Accordingly, ADA is now in a strong downtrend, under sustained selling pressure. This may mean that there is little chance of a price reversal in the near future, as long as ADX does not start to decline.
The Ishimoku cloud predicts a decline
The Ishimoku cloud reflects a bearish outlook for Cardano (ADA): the price is below the cloud. This usually means that the asset may continue to fall as it fails to recover above key resistance levels.
The cloud is highlighted in red, and indicates potential resistance to growth attempts. The Tenkan and Kijun lines are above the price, emphasizing the bearish bias and showing that the sellers are controlling the market.
In addition, the short-term EMA lines on the chart are located below the long-term ones, confirming the bearish trend. This indicates a possible continuation of the price decline if there is no breakout of the cloud. Such a breakout may indicate a possible trend change. However, under current conditions, consolidation or further decline is more likely.
ADA forecast: whether recovery after corrections is possible
All EMA lines pass above the current Cardano price, confirming the bearish bias. This arrangement of MA, together with the recently formed “death cross”, speaks of strong pressure and shows that sellers are in full control of the market.
If the downtrend continues, the price may soon reach the $0.31 support level. If the strong bearish momentum continues, it will be able to go even lower.
However, if the sellers' pressure weakens and the uptrend starts, ADA may try to reach the next significant resistance level at $0.36 (+9% from the current price). The future dynamics of ADA will largely depend on the change of the current bearish mood to a more optimistic one.