Cardano (ADA) Price: Death Cross Looms, Point to Bearish Momentum
Cardano (ADA) Price Dips: Death Cross Looms, Technical Indicators Point to Bearish Momentum
Cardano (ADA) is experiencing increasing bearish pressure, with the price down 12% in the last seven days and over 4% in the past 24 hours. Its market cap currently sits at $33 billion, maintaining its position as a top 10 cryptocurrency.
Technical Indicators Signal Bearish Trend
Several technical indicators suggest this downward trend may continue. The Average Directional Index (ADX) has sharply increased from 14.2 to 22.3 in just two days, indicating strengthening bearish momentum. While not yet in the strong trend zone (above 25), this move from a weak trend zone (below 20) suggests growing selling pressure. The potential formation of a death cross on the Exponential Moving Average (EMA) lines further reinforces this bearish outlook.
Source: TradingView
Whale Activity: A Mixed Signal
The number of whale addresses holding between 1 and 10 million ADA has slightly increased, but remains below recent peaks. While this suggests some accumulation, it's not indicative of strong conviction buying. This cautious approach by large holders could indicate price testing rather than significant bullish sentiment.
Source: Santiment
ADA Price Prediction: Potential for Further Correction
The looming death cross on the EMA lines suggests potential support tests at $0.87, $0.829, and $0.76. This could represent a 20% downside risk. Conversely, a bullish reversal would require overcoming resistance at $1.03, with further upside targets at $1.11 and $1.16 (a potential 21% gain). However, the death cross suggests any upward movement might face considerable resistance until the EMAs realign bullishly.
Source: TradingView
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Market conditions are volatile. Conduct thorough research and consult a professional before making investment decisions.
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