Cardano (ADA) has fallen nearly 10% in the last 24 hours, continuing a 30% correction over the past month. Despite the sharp decline, trading volume has surged by 123% in the last 24 hours, reaching $1.4 billion.
This increase in volume indicates heightened market activity, likely driven by intense selling pressure. As ADA navigates this volatile period, technical indicators suggest that bearish momentum remains dominant, although potential reversal signals are emerging.
ADA BBTrend Is Positive, But Still Way Below Last Rally Levels
ADA’s BBTrend is currently at 2.83, rising from -0.90 just a day ago, indicating a shift in momentum. BBTrend is an indicator derived from Bollinger Bands that measures the strength and direction of a trend.
Positive values suggest bullish momentum, while negative values indicate bearish pressure. Although ADA’s BBTrend has moved into positive territory, signaling growing buying interest, it is still significantly below the levels seen in mid-February when it exceeded 10.
This suggests that while ADA is gaining some upward momentum, the buying pressure is not as strong as it was during its previous rally. The current BBTrend level indicates a cautious recovery, implying that buyers are gradually stepping in but have not yet fully regained control.
If the BBTrend continues to rise, it could indicate a strengthening bullish sentiment. However, until it approaches higher levels, the current uptrend remains fragile, and ADA could still face resistance.
Ichimoku Cloud Shows a Strong Bearish Setup for Cardano
The Ichimoku Cloud for ADA shows a strong bearish trend. The price is trading well below the cloud, indicating continued downward momentum. The red cloud ahead reflects bearish sentiment, with Leading Span A (green line) below Leading Span B (red line).
The Tenkan-sen (blue line) is positioned below the Kijun-sen (red line), reinforcing the selling pressure. Additionally, the Chikou Span (green lagging line) is below the price action, confirming the overall bearish outlook.
The sharp price drop started after failing to break above the Kijun-sen, leading to a decisive move downward. Currently, the price shows little sign of recovery, and the bearish structure remains intact.
For any potential reversal, the price would need to move above the Tenkan-sen and Kijun-sen, followed by a breakout through the cloud. Until this happens, the bearish trend is likely to persist, reflecting the strong downward pressure on ADA.
Cardano Could Fall Until $0.5 Next
Cardano price has dropped 18% in the last two days, with its EMA lines forming a strong bearish setup. The short-term EMAs are clearly below the long-term ones, indicating intense selling pressure and confirming the bearish momentum.
If this downtrend continues, ADA could fall further to $0.50. The wide separation between the EMAs suggests that the negative sentiment is strong, making it challenging for buyers to regain control.
However, if ADA manages to reverse this trend, there is potential for a significant recovery. If this scenario happens, ADA could first test the resistance at $0.73, and if that level is broken, it could climb to $0.82.
If the uptrend remains strong, ADA could potentially reach $0.90, representing a 40% upside. For this reversal to occur, the short-term EMAs would need to cross above the long-term ones, signaling a shift from bearish to bullish sentiment.
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