Cardano (ADA) faces the risk of plummeting to $0.44 amid a weakening wave in the market.

Cardano (ADA) is continuing its downward trend with a decrease of 7.9% in just the last 24 hours. Technical indicators such as BBTrend and DMI are both signaling negatively, reinforcing the likelihood that the downtrend has not yet stopped.

BBTrend of ADA weakens after reaching above 5 yesterday

The BBTrend indicator of Cardano has unexpectedly fallen into the negative zone, recording a level of -5.15 – a notable reversal compared to the peak of +5.28 just a day earlier.

This development reflects a clear change in market sentiment, indicating that the recovery momentum of Cardano is gradually losing steam. The sudden drop in the BBTrend indicator has further heightened concerns among ADA investors, especially in the context of the entire altcoin market also sending gloomy signals.

The BBTrend indicator of Cardano on the 4-hour chart | Source: TradingViewBBTrend (Bull and Bear Trend) is a technical indicator used to measure the intensity and direction of price trends. When the index exceeds +1, the market is often in a strong uptrend; conversely, a level below -1 is a clear sign of a deep downtrend. The index approaching the 0 mark often reflects the hesitation of investors or the potential for the market to reverse.

For Cardano, the sharp drop of BBTrend to -5.15 is a clear warning that the bears are regaining dominance, opening up the risk of pulling the price down to lower levels in the near future.

The DMI indicator of Cardano shows weakness

The DMI chart (Directional Movement Index) of Cardano is reflecting notable signals of change. The ADX index — a measure of trend strength — has decreased from 43.41 to 32.29, indicating that the trend momentum is weakening. However, with the ADX still maintaining above the important threshold of 25, the market is still operating within a clear trend and has not entered a sideways state.

The weakening of the ADX indicator indicates that market momentum is gradually slowing down; however, the overall trend still leans towards bearishness. This reflects that while the bears are no longer completely overwhelming, they are still maintaining control in the market.

The DMI indicator of Cardano on the 4-hour timeframe | Source: TradingView ADX is a core component of the Average Directional Index system (DMI), accompanied by two directional indicator lines, +DI (positive) and -DI (negative). In the last 24 hours, +DI has decreased from 19.19 to 15.9 — indicating that buying pressure continues to weaken. Conversely, -DI surged sharply from 21.4 to 30, indicating that selling pressure is clearly increasing, further reinforcing the bearish stance.

With the -DI significantly outperforming the +DI and the ADX indicator remaining at a high level, the bearish trend is still clearly dominant in the market.

Will Cardano break the $0.52 level?

The price of Cardano (ADA) has recovered after sliding down to the $0.52 mark — a key support zone that has been maintained for several weeks.

ADA/USDT 4-hour chart | Source: TradingViewHowever, the rapid recovery momentum has stalled as buying pressure is not strong enough to bring the price closer to the significant resistance level at $0.70. This is a clear sign of weakness, reflecting the negative sentiment of investors.

If selling pressure is maintained, the price of ADA could challenge the $0.52 level once again. A break below this level could cause the price to drop quickly to the next important support level at $0.44 – the lowest price since November 2024.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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