Cardano (ADA) price has surged almost 7% in the last 24 hours, bringing its 7-day gains to 17%. Trading volume has also seen a significant boost, climbing roughly 25% in the past day and nearing $2 billion.
As whale accumulation grows and ADA approaches critical resistance levels, the market’s focus turns to whether the uptrend can strengthen or if a correction may be on the horizon.
ADA’s Current Uptrend Lacks Strength
Cardano Average Directional Index (ADX) is currently at 21.2, up from 18 two days ago, signaling a gradual strengthening of its trend. Earlier today, the ADX reached 22, briefly crossing the threshold that typically defines the presence of a stronger trend.
This increase aligns with ADA’s ongoing uptrend, suggesting that while the trend is still in its early stages of development, it is showing signs of gaining momentum.
The ADX measures trend strength on a scale from 0 to 100, independent of trend direction. Values below 20 indicate a weak or range-bound market, while values above 25 suggest a strong trend. With ADA ADX at 21.2, the trend is approaching meaningful strength but has yet to fully confirm its robustness.
If the ADX continues to rise, it could signal that ADA’s uptrend is solidifying, increasing the likelihood of sustained upward price movement. However, if the ADX stalls or declines, it may suggest that the current rally is losing momentum and could shift toward consolidation.
Cardano Whales Started Accumulating Again
The number of Cardano whales — wallets holding between 1 million and 10 million ADA — reached a month-low of 2,453 on January 9. Since then, the count has been steadily rising, currently standing at 2,484, the highest level since December 28.
This increase in large holders suggests renewed interest and accumulation by influential market participants, which could significantly shape ADA price.
Tracking whale activity is crucial because their holdings and movements often have outsized effects on market trends. The recent growth in whale numbers could indicate increasing confidence in ADA price potential, as these entities may be positioning themselves for future gains.
If this accumulation trend continues, it could create upward pressure on ADA’s price, as reduced circulating supply and concentrated holdings often support price appreciation. Conversely, a reversal in this trend could signal potential sell-offs or weakening support.
Ada Price Prediction: Can It Start the New Rally?
Cardano Exponential Moving Average (EMA) lines currently exhibit a bullish setup, with short-term EMAs positioned above long-term ones.
This alignment reflects strong upward momentum and was reinforced by the formation of a golden cross two days ago, a classic technical signal that often precedes sustained price gains.
If the current uptrend persists, Cardano price could test its first resistance level at $1.119. A successful breakout above this level might pave the way for further gains, with $1.15 serving as the next target.
However, the support at $1.03 remains critical to sustaining the uptrend. A break below this level could signal a reversal, potentially pushing ADA price into a downtrend that could extend to $0.879, representing a possible 17.9% correction.
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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.
