Cardano (ADA) Falls 15% in 7 Days, Bearish Momentum Signals More Losses

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As a seasoned researcher who has navigated countless market cycles, I’ve seen my fair share of bull and bear runs. The current downtrend for Cardano (ADA) is no exception, with the price decline over the past seven days serving as a stark reminder that even the most promising cryptocurrencies are not immune to market fluctuations.

Over the last week, the price of Cardano (ADA) has dropped by 15%, a decline that follows a previous surge which took it to its highest point since 2022. Technical indicators such as ADX are showing an increase in bearish momentum, implying that the selling pressure is becoming stronger within the current downward trend.

1) Lately, there’s been a decrease in whale activity, which is a shift from previous growth and serves as an additional factor fueling temporary bearish sentiments. As crucial levels of support and resistance are being tested, the upcoming actions will indicate whether Cardano (ADA) will continue its downtrend or start on a road to recovery.

Cardano Downtrend Is Getting Stronger

Right now, the Cardano ADX stands at 19.96, marking a significant jump from 11 within the past day, suggesting a strengthening trend. Yet, since Cardano (ADA) is experiencing a downtrend, the uptick in ADX indicates that the bearish pressure is intensifying.

It appears that the pressure to sell ADA might be increasing significantly, meaning there could be more drops in its price over the short term if buyers can’t offset the increasingly dominant bearish momentum.

The Average Directional Index (ADX) gauges the intensity of a price trend regardless of its direction. When values surpass 25, it signifies a robust trend, whereas readings lower than 20 hint at a weak or nontrending financial market.

As ADA ADX nears 20 and increases, there’s a chance the downward trend could intensify into a stronger bearish phase, which might result in heightened price fluctuations. If Cardano’s price doesn’t receive support or witness an uptick in buying interest, its short-term trend is likely to persist in weakness.

ADA Whales Are Exiting the Market

The count of wallets containing between 10 million and 100 million ADA has decreased to 407, dropping from 409 over the past five days. This decline suggests a continuing trend of fewer large-scale holders, or ‘whales’, following a significant rise in their numbers around early December.

The drop might signal that certain whales are unloading their holdings, potentially hinting at decreased trust or cashing out profits.

Monitoring whale behavior in financial markets is essential as these big players exert substantial impact on price movements. From December 10th to December 14th, the number of ADA ‘whales’ (significant investors) rose from 400 to 409, indicating a strong accumulation of ADA during that timeframe.

In other words, the drop that follows suggests the buildup could be slowing down or even reversing, which might result in more sellers than buyers and a temporary fall for Cardano (ADA), unless fresh demand comes into play.

Cardano Price Prediction: Can ADA Correct By 46%?

In simpler terms, when Cardano’s Exponential Moving Averages (EMAs) show a decreasing trend, it might suggest a more significant drop is imminent. The shortest EMA is about to cross below the longest EMA, creating what’s known as a “death cross.” This pattern often signals bearish market conditions, meaning there could be continued downward pressure on Cardano’s price.

In such a scenario, the value of ADA might be put to the test at around $0.95 as potential support. However, should this level prove insufficient, there’s a possibility for it to continue dropping, potentially reaching $0.65 or even dipping as low as $0.519.

Conversely, should the trend shift and purchasing power intensify, the price of Cardano might attempt to surpass the resistance point at $1.03. If it manages to break through this barrier, it could lead to additional growth, with possible milestones at $1.18 and potentially even $1.24.

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2024-12-19 18:52