Cardano (ADA) price has dropped over 25% in the last seven days, bringing its market cap down to $26 billion. Trading volume has also fallen 35% in the past 24 hours, now sitting at $766 million, signaling decreased market activity.
Meanwhile, whale addresses have stabilized after a brief surge, suggesting a period of balance as large holders await clearer market signals.
Cardano ADX Shows the Current Downtrend Is Still Strong
Within five days, Cardano’s Average Directional Index (ADX) climbed from 11.2 to 41.6, indicating a strong trend that coincided with a 20% price correction.
ADX measures trend strength, not direction, with readings above 25 indicating a strong trend and below suggesting weakness. Given ADA’s high ADX, the recent downtrend has been powerful, reinforcing bearish momentum.
Despite still being in a downtrend, ADA’s ADX has remained stable around 41 and 42 for two days and slightly declined between yesterday and today.
This suggests the trend may be losing intensity, though it hasn’t reversed and is still very strong. If ADX continues to drop while ADA price steadies, sellers could be weakening, possibly leading to consolidation.
However, with no clear reversal, downside risks remain.
Cardano Whales Has Been Stable For Three Weeks
The number of Cardano whale addresses, holding between 1,000,000 and 10,000,000 ADA, jumped from 2,453 to 2,483 between January 9 and January 14. However, after that spike, the number declined slightly and has remained stable over the past few weeks.
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Author: Tiago Amaral
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