The price of Cardano (ADA) has surged 52% in the past 7 days, but has pulled back more than 5% in the past 24 hours. Although it has recently rebounded, there are signs that the current uptrend may be losing momentum.
Indicators such as ADX and whale activity suggest that while ADA remains in a positive trend, its strength is waning. This indicates that ADA is at a critical juncture, where it either regains momentum or faces potential reversal.
ADA's current trend remains strong, but is losing momentum
ADA's ADX (Average Directional Index) currently stands at 45.02, down from nearly 70 two days ago. The decline in ADX indicates that the strength of the trend is weakening, suggesting that the previous momentum may be fading.
Although the ADA price remains in an uptrend, the decline in ADX suggests that the pace of the uptrend may be slowing, even if the trend direction itself has not reversed.
ADX is a technical indicator used to measure the strength of a trend, but does not specify its direction. Generally, ADX above 25 is considered a strong trend, while below that value indicates a weaker trend.
ADA's ADX at 45.02 indicates that the trend is still quite strong, but the recent decline from higher levels suggests caution should be exercised.
Cardano whales return
The number of addresses holding between 1,000,000 and 10,000,000 ADA remained stable from October to early November, but has started to grow again since November 8.
Since then, the number of these large wallets has increased from 2,432 to 2,451. After this wave of accumulation from November 11 to November 13, it has entered a stabilization phase, suggesting that the recent buying activity may have reached a stable level.
Tracking these large addresses, often referred to as "whales", is crucial as their buying or selling behavior can significantly impact the ADA price.
The recent surge and subsequent stabilization suggest that while whales are accumulating ADA, driving positive sentiment, they have now paused. This may mean that the ADA price could experience a period of consolidation before the next major move.
ADA Price Prediction: Can it reach $0.80 in November?
ADA's EMA lines are currently in a bullish configuration, with the short-term EMA above the long-term EMA, which typically indicates a continuing uptrend.
However, the price has now dipped below the shortest EMA line. This suggests that the strength of this uptrend may be waning.
If the current uptrend regains strength, the ADA price could test the resistance levels of $0.62 and $0.67. If these resistance levels are breached, the price could rise to $0.80 - a level not seen since March, representing a potential upside of 50.9% from the current level.
On the other hand, the signals from ADX and whale activity suggest that the uptrend may be losing momentum. If the bullish momentum in ADA fails and the trend reverses, the support area could be around $0.47, or even as low as $0.41.
