Cardano (ADA) price is currently trading below $1 for the first time since November 26, reflecting its ongoing downtrend. The ADX has risen to 41.2, confirming the strength of this bearish trend, as ADA continues to face pressure with a D- at 33.2 and D+ at 6.2.
Additionally, the Ichimoku Cloud has turned red, further signaling a bearish outlook, with ADA now positioned below the cloud. This technical setup suggests that ADA could experience continued downward pressure, potentially testing lower support levels in the near future.
ADA Downtrend Is Strong
Cardano ADX has risen to 41.2, up from around 19 two days ago, indicating that the trend is gaining strength. Despite this, ADA remains in a downtrend, with its D- at 33.2 and D+ at 6.2.
The increasing ADX shows that the trend is becoming more defined, but the dominant negative momentum suggests further downward pressure on the price.
ADX (Average Directional Index) measures the strength of a trend, with values above 25 signaling a strong trend. ADA current ADX of 41.2 confirms a strong trend, but the higher D- compared to D+ means the downtrend is leading.
This could result in continued declines unless a shift in momentum occurs.
Ichimoku Cloud Shows A Bearish Outlook For Cardano
ADA price is currently under the Ichimoku Cloud, which is turning red, indicating a bearish outlook.
This suggests that ADA’s recent upward momentum has weakened, and it could face further downward pressure in the near future.
With Cardano price being below the cloud, coupled with the red color, typically signals that the market is in a bearish phase and that further declines are possible.
Given the current setup, if ADA continues to trade below the cloud, it may face increased selling pressure. The immediate support could be around the cloud’s lower bound, and if this level fails to hold, ADA could drop further.
ADA Price Prediction: Will ADA Drop Back To $0.5?
Cardano price is currently in a strong bearish trend, with its EMA lines aligning to confirm the downward momentum. The ADX reading supports this view, indicating that the trend is gaining strength. If the bearish movement persists, ADA could first test the nearest support level at $0.87.
Should this support fail, ADA may continue its descent toward more critical levels at $0.65 and $0.519, where further price action will be critical in determining whether the downtrend continues.
On the other hand, if ADA price manages to reverse the current bearish trend and regain positive momentum, it could challenge the resistance at $1.11.
If this resistance is overcome, ADA price might continue its ascent, potentially reaching higher levels at $1.24 and $1.32.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Tiago Amaral
https://beincrypto.com/cardano-ada-price-slumps-below-1/
2024-12-10 16:30:00
