ADA Price Drops 18% In a Week But Cardano Remains in the Top 10 Ranking

Cardano (ADA) price continues to show volatility, maintaining its position among the top 10 largest cryptocurrencies by market cap despite being down over 18% in the last seven days. The recent downtrend has been marked by bearish technical indicators, including a death cross on its EMA lines and a weak position on the Ichimoku Cloud.

However, some signs suggest that bearish momentum might be slowing, with ADA’s ADX showing a slight decline after peaking earlier in the week.

Cardano Downtrend Is Still Strong But Could Be Losing Its Steam

The ADA Average Directional Index (ADX) is currently at 27.5, having risen from below 20 on December 19 but slightly declining from over 30 in recent days. This fluctuation in ADX reflects shifts in the strength of Cardano ongoing downtrend.

While an ADX above 25 typically indicates a strong trend, the slight drop suggests that the downtrend may be losing some momentum, although it still remains significant.

ADA ADX. Source: TradingView

ADX measures the strength of a trend, regardless of its direction, on a scale from 0 to 100. Values above 25 signal a strong trend, while those below 20 suggest a weak or absent trend. With Cardano ADX at 27.5 and trending slightly downward, it indicates that while the current bearish momentum is still present, its intensity could be diminishing.

In the short term, this might lead to reduced selling pressure, allowing ADA price to consolidate or even attempt a minor recovery. That will depend on whether buying activity increases to counterbalance the bearish trend.