Hold onto your hats, folks! Cardano‘s ADA has taken a wild plunge, shedding over 25% of its value in just a week. The market cap now stands at a mere $26 billion, and trading volume has shrunk by 35% in the past day.
But don’t be too alarmed, the whale addresses have settled down after a brief frenzy. It seems like the big fish are biding their time, waiting for clearer waters before making their move.
Cardano’s ADX: The Downtrend Still Going Strong
In just five days, Cardano’s Average Directional Index (ADX) skyrocketed from a measly 11.2 to a formidable 41.6. This sharp climb coincided with a 20% nosedive in price.
Now, ADX doesn’t tell us if a trend is bullish or bearish, it only measures the strength of the trend. A reading above 25 indicates a strong trend, while below suggests a weak one. With ADA’s high ADX, the downtrend has been a doozy, bolstering the bearish momentum.
But fear not, the ADX has been holding steady around 41 and 42 for a couple of days now, and it’s even seen a slight decline. This could mean the trend is losing some of its intensity. If the ADX continues to drop while the ADA price stabilizes, those sellers might be getting weak in the knees, possibly leading to a consolidation.
However, with no clear signs of a reversal, the downside risks remain.
Cardano Whales: Steady as She Goes
The number of Cardano whale addresses, holding between 1,000,000 and 10,000,000 ADA, saw a brief surge but has since stabilized.
These whales are important to watch because their buying and selling patterns can signal shifts in the market. A rising number of whale addresses often suggests confidence and potential price support, while a decline may indicate selling pressure.
Currently, the ADA whale addresses are holding steady at 2,469, with minor fluctuations for the past few weeks. This suggests a period of calm before the storm. The whales seem to be waiting patiently, possibly looking for greener pastures elsewhere.
ADA Price Prediction: A Tale of Two Futures
Cardano’s ADA is currently caught in a tussle between support at $0.65 and resistance at $0.82. The Exponential Moving Averages (EMAs) are telling a bearish tale, with short-term EMAs sitting below long-term ones.
This suggests that the bears are still in control, reinforcing the idea that ADA is in a downtrend. But, if the tide turns and an uptrend emerges, ADA could break through the $0.82 resistance, potentially soaring to $1.03 or even $1.16, a whopping 55% increase!
On the flip side, if the downtrend continues and ADA price slips below the $0.65 support, it could plummet to $0.51 or even $0.32, marking a 55% nosedive. Buckle up, folks, it’s going to be a bumpy ride!
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2025-02-07 01:13