Cardano (ADA) price remains one of the top 10 cryptocurrencies by market cap, despite being down over 9% in the past seven days. Recent data suggests that ADA’s downtrend is losing momentum, with its ADX dropping sharply, indicating a weakening bearish trend.
Whale activity, which has stabilized since December 22, also suggests reduced selling pressure, pointing toward a consolidation phase. Traders are now closely monitoring the $0.859 support level, as its strength will determine whether ADA price can recover toward $1 or face further declines to $0.76.
ADA Downtrend Is Losing Its Steam
ADA Average Directional Index (ADX) is currently at 14.96, a sharp decline from over 30 just three days ago. This significant drop indicates a weakening trend strength, suggesting that the ongoing downtrend is losing momentum.
The steep decline in ADX highlights reduced conviction in the current bearish movement, which could lead to a period of price consolidation or even a potential reversal if buyers start to re-enter the market.
ADX measures the strength of a trend on a scale from 0 to 100, without indicating the trend’s direction. Values below 20 suggest a weak or nonexistent trend, while values above 25 typically signal a strong trend. With Cardano ADX at 14.96 and falling, the current downtrend lacks sufficient strength to sustain significant bearish momentum.
In the short term, this could mean ADA price may stabilize or move sideways unless renewed selling pressure emerges to reinforce the trend. Conversely, a lack of selling activity could allow buyers to regain control and initiate a potential recovery gradually.
Cardano Whales Stopped Selling
The number of ADA whales, defined as addresses holding between 10 million and 100 million ADA, reached a monthly high of 409 on December 14 before starting to decline.
Since December 22, this number has stabilized, fluctuating between 404 and 405, indicating that major holders have paused significant accumulation or distribution activity.
Tracking whale activity is essential because these large holders can significantly impact an asset’s price through their buying or selling behavior. The recent stabilization of ADA whale addresses suggests that the market is in a consolidation phase, with neither strong accumulation nor distribution occurring.
In the short term, this could mean ADA price may remain range-bound as whale activity lacks a decisive directional push.
Cardano Price Prediction: Can ADA Recover $1 Levels In December?
Cardano price is currently trading near a critical support level at $0.859. If this support holds strong and ADA price manages to recover an uptrend, the price could test the resistance at $0.91 next.
Breaking through this resistance may pave the way for ADA price to climb higher, potentially testing levels around $0.99 and $1, signaling a significant recovery and a shift toward bullish momentum.
On the other hand, if the downtrend regains strength and the $0.859 support fails to hold, Cardano price could face further bearish pressure.
In this scenario, the price might continue to decline, testing the next major support level at $0.76. That would mark a potential 11.6% further correction for ADA.
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.
Source link
Tiago Amaral
https://beincrypto.com/cardano-ada-price-downtrend-fades-as-whale-activity-stabilizes/
2024-12-26 20:00:00
