Cardano (ADA) has experienced a significant drop of nearly 10% within the last 24 hours, continuing a downward trend that has seen a 30% correction over the past month. Despite this sharp decline, trading volume has spiked by 123% in the same time frame, reaching a substantial $1.4 billion.

This surge in volume points to increased market activity, likely fueled by significant selling pressure. As ADA maneuvers through this period of volatility, technical indicators are indicating that bearish momentum is still prevalent, although there are signs of potential reversals on the horizon.

ADA's BBTrend is currently positioned at 2.83, a notable increase from -0.90 just a day ago, demonstrating a shift in momentum. BBTrend, derived from Bollinger Bands, serves to gauge the strength and direction of a trend. While the positive values suggest bullish momentum and growing buying interest, it is essential to note that ADA's BBTrend is still considerably below levels observed during the previous rally in mid-February when it surpassed 10.

Although ADA is showing signs of upward momentum and an increase in buying interest, the current BBTrend level hints at a cautious recovery phase. This implies that buyers are gradually entering the market but have yet to exert full control.

On the other hand, the Ichimoku Cloud analysis for ADA paints a bearish picture with the price trading below the cloud, signaling continued downward pressure. The overall structure remains bearish as the price struggles to show signs of recovery, reinforcing the strong selling sentiment.

With the short-term EMAs below the longer-term ones, ADA faces intense selling pressure, potentially leading to a further decline with a target around $0.50. However, a reversal scenario could see ADA testing the resistance at $0.73, with a potential climb towards $0.82 and even $0.90, indicating a notable upside if a shift from bearish to bullish sentiment occurs.