What’s Next for Cardano (ADA)? A Closer Look at the Current Market

If you’ve been keeping an eye on Cardano (ADA) lately, you might have noticed that it’s had a pretty rough month. Despite dropping over 20% in the past 30 days, it’s still holding strong as a top 10 cryptocurrency by market cap.

But what does the future hold for ADA? Technical Indicators: A Weak Trend Momentum

Let’s take a look at the technical indicators, specifically the ADX (Average Directional Index). The ADX measures the strength of a trend, whether it’s upward or downward, on a scale from 0 to 100. Values above 25 indicate a strong trend, while readings below 20 signify a weak or absent trend.

Currently, the ADA ADX is at 11.49, which is well below the 20 mark. This suggests that the current downtrend lacks strong momentum, and the selling force behind the price decline has diminished. In other words, the trend strength is insufficient to drive significant price movements. What Does This Mean for ADA’s Next Move?

ADA is currently trading between two key levels: $0.78 support and $0.87 resistance.

The next move hinges on whether these levels hold. If the $0.78 support fails to hold, ADA price could face a sharp correction, potentially dropping as low as $0.519. On the other hand, if ADA price successfully tests and surpasses the $0.87 resistance, it could signal a shift toward bullish momentum, and the price may climb to test the next resistance at $1.04.

Whale Activity: A Neutral Sentiment

Another important factor to consider is whale activity. The number of addresses holding between 10 million and 100 million ADA has remained stable since December 18, fluctuating slightly between 407 and 404. This suggests that major investors are neither significantly accumulating nor offloading their positions, reflecting a cautious stance.

What’s the Verdict?

So, can ADA go back to $1? It’s possible, but it depends on whether the $0.87 resistance holds. If it does, we might see a shift toward bullish momentum, and the price may climb to test the next resistance at $1.04. However, if the $0.78 support fails to hold, ADA price could face a sharp correction.

As always, it’s essential to keep in mind that market conditions are subject to change without notice. This analysis is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research and consult with a professional before making any financial decisions.

Reported by Beincrypto.com

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