Cardano (ADA) has taken a significant hit in the past week, with its price plummeting by over 25%. This decline has pushed its market cap down to $26 billion, while trading volume has fallen by 35%, now standing at $766 million within a 24-hour period, indicating a decrease in market activity.
On the other hand, whale addresses have shown stability following a brief surge, hinting at a period of equilibrium as major holders await clearer market signals.
Cardano's Average Directional Index (ADX) has surged from 11.2 to 41.6 in just five days, signaling a robust trend aligned with a 20% price correction. The high ADX value of ADA suggests a powerful downtrend, reinforcing bearish momentum.
Despite the ongoing downtrend, ADA's ADX has maintained stability around 41-42 for two consecutive days and experienced a slight decline recently, indicating a potential loss in momentum. This could lead to sellers weakening, possibly resulting in market consolidation, although downside risks still linger without a clear reversal signaled.
The number of Cardano whale addresses, holding significant quantities of ADA between 1,000,000 and 10,000,000, saw a slight increase and subsequent stabilization over the past three weeks. Monitoring these whale movements is crucial as their actions can signal market shifts. The current stability suggests large holders are neither aggressively accumulating nor selling, possibly exploring other investment opportunities in the cryptocurrency space.
ADA's price prediction is currently hanging between support at $0.65 and resistance at $0.82, with the EMA lines indicating a bearish trend. If ADA manages to break above the $0.82 resistance, it could pave the way for a potential 55% upside towards $1.03 or $1.16. Conversely, if the downtrend continues and ADA breaches the $0.65 support, it may drop further to $0.51 or even $0.32, marking a 55% decline and hitting its lowest levels since December 10, 2024.
In summary, Cardano is experiencing a period of volatility and uncertainty, with both bullish and bearish outcomes possible depending on market trends and whale behavior in the coming days.