Cardano (ADA) has had a tough month, dropping over 20% in the past 30 days, yet it remains a top 10 cryptocurrency by market cap. Technical indicators, including the ADX, point to weak trend momentum since December 24, suggesting the downtrend lacks the strength for significant price moves.
ADA is currently trading between key levels of $0.78 support and $0.87 resistance. Its next move hinges on whether these levels hold, with potential outcomes including a sharp correction or a rally toward $1.04.
ADA ADX Shows the Downtrend Isn’t Strong Anymore
Cardano ADX is currently at 11.49, reflecting a weak trend strength as it has remained below 20 since December 24. This low ADX reading suggests that the current downtrend lacks strong momentum, indicating that while ADA is still under bearish pressure, the selling force behind the price decline has diminished.
This could signal the potential for a period of consolidation in the short term, as the trend strength remains insufficient to drive significant price movements.
The Average Directional Index (ADX) measures the strength of a trend, whether upward or downward, on a scale from 0 to 100. Values above 25 indicate a strong trend, while readings below 20, like ADA current 11.49, signify a weak or absent trend.
In the context of a downtrend, this low ADX reading means that the bearish momentum is not firmly established to continue, which could limit further price declines unless selling pressure increases. Without a rise in ADX to confirm stronger trend dynamics, ADA’s price may continue to move sideways or experience only modest fluctuations in the near term.
Cardano Whales Are Not Moving That Much
The number of addresses holding between 10 million and 100 million ADA has remained stable since December 18, fluctua
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Author: Tiago Amaral
