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Cardano (ADA) has surged over 100% in the past 30 days but has declined nearly 4% in the last week, indicating short-term selling pressure.
The sharp correction from December 7 to December 10 has eased, with ADA’s Average Directional Index (ADX) dropping to 21.4, signaling weakening trend strength. However, renewed whale accumulation suggests that large holders are positioning for a potential recovery.
Cardano Strong Downtrend Just Faded Away
Between December 7 and December 10, ADA price experienced a sharp correction, dropping 23% as its Average Directional Index (ADX) spiked to 45, signaling a strong downtrend.
However, this momentum has eased, and ADA’s ADX now stands at 21.4, reflecting a significant loss in trend strength.
The ADX measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 suggesting a lack of a clear direction. With ADA ADX at 21.4, it sits in a neutral zone, pointing to consolidation.
This indicates that the previous downtrend has subsided, but no strong upward or downward trend has emerged, leaving ADA’s price movement uncertain in the near term.
ADA Whales Are Accumulating Again
Between December 7 and December 10, the number of wallets holding between 10 million and 100 million ADA fell sharply from 406 to 400, marking the lowest level since November 11.
This decline suggests that large holders were reducing their positions during the correction.
Tracking whale activity is crucial as these large holders often drive significant price movements through their buying or selling decisions. Interestingly, after the sharp decline, the number of wallets in this category has rebounded, now sitting at 405.
This resurgence could indicate renewed confidence among major holders. That could signal potential price stability or even a recovery for ADA price in the near term.
ADA Price Prediction: Will It Go Back to $1.20?
After losing the $1.15 support, Cardano price dropped to $1.10. Its EMA lines indicate the absence of a strong trend, as three of them are trading very close to each other.
With the ADX now at 21, the strength of the recent correction appears to have diminished. That suggests that ADA may be entering a consolidation phase.
If a new downtrend emerges, ADA price could test the $1.03 support. A failure to hold that level might push it further down to $0.87. On the upside, whale accumulation has resumed, signaling potential anticipation of a recovery.
Should Cardano rebound, it could test the resistance at $1.24, with the possibility of reaching $1.32 if that level is broken.