The Cardano (ADA) price has taken a steep fall, dropping over 25% in the past week, bringing its market capitalization down to $26 billion. At the same time, trading volume has declined 35%, settling at $766 million, indicating weakening market activity.
Cardano’s Downtrend Strengthens
Technical indicators suggest that ADA’s downward momentum remains intact. The Average Directional Index (ADX) surged from 11.2 to 41.6 in just five days, signaling a strong trend. While ADX has stabilized around 41-42 in the past two days, it remains at high levels, confirming that the bearish trend is still dominant.
If ADX begins to decline and ADA’s price stabilizes, selling pressure could weaken, leading to a potential price consolidation. However, with no clear reversal signals, downside risks persist.
Whales Stay on the Sidelines
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Large investors holding 1 to 10 million ADA have remained relatively unchanged in recent weeks. Between January 9-14, the number of whale addresses increased from 2,453 to 2,483, but later slightly declined and has since remained stable at 2,469.
The behavior of whale investors provides insight into market direction. A rise in large holders could support price stability, while a decline may signal increased selling pressure. The current equilibrium suggests that major investors are observing the market and possibly diversifying into other assets. If this trend continues, ADA price could enter a consolidation phase as the market seeks direction.
Will ADA Surge 55% or Drop Further?
ADA is currently trading between $0.65 support and $0.82 resistance. Short-term Exponential Moving Averages (EMA) remain below long-term EMAs, reinforcing the ongoing bearish trend.
If ADA breaks above $0.82, a rally toward $1.03 or even $1.16 could be possible, representing a 55% price increase. However, if the $0.65 support level is breached, ADA could decline to $0.51 or even $0.32, marking a potential 55% drop—its lowest point since December 10, 2024.
Investors should closely monitor trend reversal signals to gauge whether Cardano is set for a rebound or further downside. Stay updated with The Bit Journal for the latest crypto market insights.
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The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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