ADA Price Drops 18% In a Week But Cardano Remains in the Top 10 Ranking

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The price of Cardano (ADA) remains volatile, still ranking among the top 10 largest cryptocurrencies in terms of market capitalization. However, it has dropped by approximately 18% over the past week. This recent decline is indicated by bearish trends on technical analysis tools such as the death cross on its Exponential Moving Average (EMA) lines and a weak position within the Ichimoku Cloud.

Yet, indications point towards a potential weakening in bearish trend, as ADA’s Average Directional Movement Index (ADX) has slightly decreased following its peak earlier in the week.

Cardano Downtrend Is Still Strong But Could Be Losing Its Steam

Right now, the ADA Average Directional Index (ADX) stands at 27.5. It has increased from a level below 20 on December 19 but has slightly dropped from over 30 in recent times. This up and down movement in ADX indicates changes in the intensity of Cardano’s current downtrend.

When the ADX value exceeds 25, it usually signifies a robust trend. However, a minor decrease in its value could imply that the downward trend might be weakening slightly, though it’s important to note that the trend still holds considerable strength.

As a researcher examining the Average Directional Index (ADX) of Cardano, I find that this metric gauges the strength of any trend, be it bullish or bearish, on a scale between 0 and 100. Values surpassing 25 point to a robust trend, while numbers below 20 hint at a weak or non-existent trend. Currently, Cardano’s ADX stands at 27.5 and is showing a slight decline. This suggests that although the prevailing bearish momentum remains present, its intensity may be waning.

For a while, less selling could cause ADA’s price to stabilize or potentially rise slightly, but whether it does so depends on if there’s an increase in buying to combat the overall downward trend.

Ichimoku Cloud Shows a Negative Sentiment

For Cardano (ADA), the Ichimoku Cloud chart suggests a prolonged negative or bearish movement. Currently, the price resides beneath the cloud, which is highlighted by both red and green zones, implying that the market pressure is pushing prices lower.

The bluish trendline (Tenkan-sen) continues to hover beneath the red support line (Kijun-sen), suggesting that pessimism is still prevalent in the market. Yet, as these lines grow closer, it seems there might be a decrease in the downward pressure if the price finds more stability.

The green line, representing the lagging span, is positioned beneath both the price and the cloud, indicating a prolonged downtrend. Additionally, the upcoming cloud (in red) signals continuous bearish influence. This occurs due to the fact that the initial green span A remains under the subsequent red span B.

The current situation seems to indicate that ADA’s market environment is tilting towards a downtrend, with few indicators suggesting an imminent change unless there’s more stabilization in the near future.

ADA Price Prediction: Will Cardano Go Back To $1?

On December 20th, the ADA Exponential Moving Average (EMA) lines created what’s known as a “death cross,” where the short-term EMA moved beneath the long-term EMA. This is a common bearish signal suggesting prolonged downward pressure. If this trend persists, the price of Cardano might experience additional declines and may reach support at around $0.78.

If the downward trend continues and the value of ADA doesn’t manage to stay above $0.78, there’s a possibility it could drop to $0.65 or even $0.519, representing a potential 42% decrease from its current price range.

If the positive trend strengthens and more buyers emerge, the price of Cardano (ADA) might regain its high ground. Initially, it may overcome the resistance points at $0.99 and subsequently at $1.039.

Overcoming these stages indicates increased buying enthusiasm, potentially setting the stage for an advance toward $1.18. This move could present a possible 31% increase from the current prices.

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2024-12-24 21:17