ADA Price Surges 6% Despite Mixed Signals
ADA Price Jumps 6%, but Uncertainty Remains
Cardano (ADA) experienced a 6% price increase in the last 24 hours, boosting its market cap to $34 billion. While this short-term gain is encouraging, ADA's overall trend remains unclear, with technical indicators providing conflicting signals. The coin attempts to reclaim the $1 price point.
Weak Momentum and Stable Whale Accumulation
The Average Directional Index (ADX), a measure of trend strength, currently sits at 15.3, down from 22.2 just three days prior. Readings below 20 indicate weak or absent trends. This decrease follows the announcement of a roadmap outlining upcoming Cardano network changes. Meanwhile, whale accumulation has remained relatively stable, suggesting a lack of significant buying pressure from large investors.
The chart below illustrates the decline in ADA's ADX:

This consolidation period suggests that ADA's price movement may remain range-bound until the ADX rises again, potentially exceeding 25 to signal a stronger developing trend.
Whale Activity Plateaus
The number of ADA whale addresses (wallets holding 1 million to 10 million ADA) stands at 2,473, fluctuating minimally over the past 15 days. This stability suggests large holders are neither accumulating nor distributing their ADA significantly. A previous surge in whale addresses between January 9th and 14th suggests a period of increased accumulation which has since leveled off.
The image below shows the stable number of whale addresses:

This cautious approach from whales might indicate a wait-and-see strategy, anticipating the next major market movement before making significant changes to their holdings.
ADA Price Prediction: Potential for a 20% Surge?
ADA is currently trading near its support level of $0.95. A break below this level could trigger increased selling pressure, potentially driving the price down toward $0.87. However, the presence of a potential golden cross in the Exponential Moving Average (EMA) lines suggests strengthening bullish momentum. This could push ADA towards the $0.99 resistance, possibly reaching $1.03 – a 20% increase from current levels.
The chart below depicts the potential for a golden cross:

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile. Conduct your own research before making investment decisions.
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