Cardano (ADA) Price Update
Cardano (ADA) has fallen nearly 10% in the last 24 hours, continuing a 30% correction over the past month. Despite this sharp decline, trading volume surged by 123% in the past 24 hours, reaching $1.4 billion.
This increase in volume reflects heightened market activity, likely driven by intense selling pressure. As ADA navigates this volatile period, technical indicators suggest that bearish momentum predominates, although potential reversal signals are emerging.
ADA BBTrend Is Positive, But Still Way Below Last Rally Levels
ADA’s BBTrend is currently at 2.83, a rise from -0.90 just a day ago, indicating a shift in momentum. BBTrend, derived from Bollinger Bands, measures the strength and direction of a trend.
Positive values suggest bullish momentum, while negative values indicate bearish pressure. Although ADA’s BBTrend has turned positive, signaling greater buying interest, it remains well below levels seen in mid-February when it exceeded 10.
This suggests that while ADA is gaining some upward momentum, buying pressure is not as strong as during its previous rally. The current BBTrend level hints at a cautious recovery, implying buyers are gradually stepping in but have not fully regained control.
If the BBTrend continues to rise, it could signal a strengthening bullish sentiment. However, without approaching higher levels, the current uptrend remains fragile, and ADA may still encounter resistance.
Ichimoku Cloud Shows a Strong Bearish Setup for Cardano
The Ichimoku Cloud for ADA reveals a strong bearish trend. The price trades well below the cloud, indicating persistent downward momentum. The ahead red cloud reflects bearish sentiment, with Leading Span A below Leading Span B.
The Tenkan-sen is below the Kijun-sen, reinforcing the selling pressure. The Chikou Span is below the price action, confirming the bearish outlook.
The sharp drop in price occurred after failing to breach the Kijun-sen, resulting in a decisive downward move. Currently, there are few signs of recovery, and the bearish structure remains intact.
For a potential reversal, the price must exceed the Tenkan-sen and Kijun-sen, followed by a breakout above the cloud. Until this occurs, the bearish trend is likely to continue, reflecting strong downward pressure on ADA.
Cardano Could Fall Until $0.5 Next
Cardano’s price has declined 18% in the past two days, with its EMA lines forming a strong bearish setup. Short-term EMAs are well below long-term ones, confirming intense selling pressure and the bearish momentum.
If this downtrend persists, ADA could drop further to $0.50. The wide separation between the EMAs indicates strong negative sentiment, making it difficult for buyers to regain control.
However, if ADA can reverse this trend, there’s potential for substantial recovery. If that happens, ADA could first test resistance at $0.73; if broken, it might reach $0.82.
If the uptrend remains robust, ADA could possibly climb to $0.90, representing a 40% potential upside. For this reversal to happen, the short-term EMAs must cross above the long-term EMAs, signaling a shift from bearish to bullish sentiment.
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