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Cardano (ADA) price has surged 52% in the last seven days, but has seen a pullback of over 5% in the past 24 hours. Despite the recent rally, there are signs that the current uptrend might be losing momentum.
Indicators such as ADX and whale activity suggest that while ADA remains in a positive trend, its strength is weakening. This points to a critical phase where ADA will either find renewed momentum or face a potential reversal.
ADA Current Trend Is Still Pretty Strong, But It’s Losing Steam
The ADX (Average Directional Index) for ADA currently stands at 45.02, a drop from nearly 70 just two days ago. This decline in ADX indicates a weakening of the trend strength, suggesting that the previous momentum might be losing steam.
While ADA price remains in an uptrend, the decrease in ADX signals that the pace of the upward movement may be slowing down, even though the trend direction itself hasn’t reversed.
The ADX is a technical indicator used to measure the strength of a trend, without specifying its direction. Typically, an ADX above 25 is considered a strong trend, while anything below that suggests a weaker trend.
With ADA’s ADX at 45.02, the trend is still quite strong, but the recent decline from higher levels suggests caution.
Cardano Whales Are Back
The number of addresses holding between 1,000,000 and 10,000,000 ADA remained stable from October through early November but started to grow again on November 8.
Since then, these large wallets have increased from 2,432 to 2,451. This surge in accumulation was followed by a stabilization phase between November 11 and November 13, indicating that the recent buying activity might have reached a plateau.
Tracking these large addresses, often referred to as “whales,” is crucial because their buying or selling behavior can significantly impact ADA price.
The recent surge followed by stabilization suggests that while whales were accumulating ADA, driving a positive sentiment, they have now paused. This could mean that Cardano price may see a period of consolidation before the next significant move.
ADA Price Prediction: Can It Reach $0.80 In November?
ADA’s EMA lines are currently in a bullish setup, with short-term EMAs positioned above the long-term ones, which generally indicates an ongoing uptrend.
However, the price has now fallen below the shortest EMA line. That suggests that the strength of this uptrend might be fading.
If the current uptrend regains strength, ADA price could test resistance levels at $0.62 and $0.67. If these are broken, it may potentially rise to $0.80—a price it hasn’t reached since March and representing a possible 50.9% increase from current levels.
On the other hand, signals from ADX and whale activity hint that the uptrend may be losing steam. If ADA’s bullish momentum fails and the trend reverses, support zones around $0.47 and possibly as low as $0.41 could come into play.