Followin' (Cardano) (ADA) decreased more than 6% on Thursday but still increased nearly 40% over the past seven days. After rising to $1.15 USD due to being included in the U.S. crypto strategic reserve, ADA has struggled to maintain above the $1 USD level in recent days.
Some users are currently questioning the inclusion of ADA in the reserve, concerned about its price. With whale accumulation slowing down and the $1 USD resistance level proving difficult to break, ADA's next move will depend on whether the bullish momentum can return or if selling pressure will push the price lower.
ADA's ADX shows the uptrend is still strong, but not as strong as before
Cardano has an ADX of 32.5, down from 43.7 three days ago, after the price increased due to ADA being included in the U.S. crypto strategic reserve.
Although the ADX has decreased, it is still above the 25 threshold, indicating the current uptrend is still strong, even though the momentum has weakened somewhat.
ADA ADX. Source: TradingView.Average Directional Index (ADX) measures the strength of a trend on a scale from 0 to 100, with values above 25 indicating a strong trend and below 20 showing weak or non-existent momentum.
With ADA in an uptrend and an ADX of 32.5, the trend is still present but may not be as strong as three days ago.
If the ADX continues to decrease, the trend could lose momentum, leading to the possibility of a slowdown or consolidation. However, if the ADX stabilizes or increases again, ADA may maintain its upward trajectory and move towards new resistance levels.
Cardano whales are not accumulating
The number of Cardano whales - addresses holding between 1 million and 10 million ADA - has slightly decreased in the past few days after a strong increase from March 01, 2025 to March 04, 2025, rising from 2,442 to 2,471.
The current number is 2,463, indicating that some large holders have reduced their positions after the recent surge. This may be influenced by the crypto community questioning the inclusion of ADA and XRP in the U.S. crypto strategic reserve.
Addresses Holding Between 1 Million and 10 Million ADA. Source: Santiment.Monitoring these whales is important because large holders can influence market Liquidation, volatility, and price trends. An increase in whale activity often signals accumulation, which can drive prices higher, while a decrease suggests potential profit-taking or a loss of confidence.
With the current slight decrease in the number of whales compared to the recent surge, ADA's recent uptrend may slow down if many large holders start selling. However, if accumulation continues, it could support further price appreciation.
Will Cardano test the $1 USD level soon?
Cardano's EMA levels show an uptrend, with the shorter-term EMAs above the longer-term EMAs.
However, despite this positive setup, Cardano's price has struggled to break above the $1 USD level in recent days after a sharp correction following a 71% surge on March 02, 2025. This suggests that while the momentum is still present, the resistance at $1 USD is proving difficult to overcome.
ADA Price Analysis. Source: TradingView.If the current uptrend reverses into a downtrend, ADA may test support at $0.818 USD, with a breakdown below that level potentially leading to $0.75 USD. A stronger sell-off could push the price down to $0.63 USD or even $0.58 USD.
Conversely, if ADA regains momentum, it may retest the $1 USD level, and if it manages to break above this crucial resistance, the price could move towards $1.17 USD, the level it nearly reached during the March 02, 2025 surge.
