ADA Price Drops 18% In a Week But Cardano Remains in the Top 10 Ranking

Source Beincrypto

Cardano (ADA) price continues to show volatility, maintaining its position among the top 10 largest cryptocurrencies by market cap despite being down over 18% in the last seven days. The recent downtrend has been marked by bearish technical indicators, including a death cross on its EMA lines and a weak position on the Ichimoku Cloud.

However, some signs suggest that bearish momentum might be slowing, with ADA’s ADX showing a slight decline after peaking earlier in the week.

Cardano Downtrend Is Still Strong But Could Be Losing Its Steam

The ADA Average Directional Index (ADX) is currently at 27.5, having risen from below 20 on December 19 but slightly declining from over 30 in recent days. This fluctuation in ADX reflects shifts in the strength of Cardano ongoing downtrend.

While an ADX above 25 typically indicates a strong trend, the slight drop suggests that the downtrend may be losing some momentum, although it still remains significant.

ADA ADX.ADA ADX. Source: TradingView

ADX measures the strength of a trend, regardless of its direction, on a scale from 0 to 100. Values above 25 signal a strong trend, while those below 20 suggest a weak or absent trend. With Cardano ADX at 27.5 and trending slightly downward, it indicates that while the current bearish momentum is still present, its intensity could be diminishing.

In the short term, this might lead to reduced selling pressure, allowing ADA price to consolidate or even attempt a minor recovery. That will depend on whether buying activity increases to counterbalance the bearish trend.

Ichimoku Cloud Shows a Negative Sentiment

The Ichimoku Cloud chart for ADA indicates a bearish trend. The price is positioned below the cloud (red and green shaded areas), signaling continued downward momentum.

The blue conversion line (Tenkan-sen) remains below the red baseline (Kijun-sen), confirming that bearish sentiment dominates the market. However, the narrowing gap between these lines hints at a potential slowdown in bearish momentum if the price stabilizes further.

ADA Ichimoku Cloud.ADA Ichimoku Cloud. Source: TradingView

The lagging span (green line) is situated below both the price and the cloud, emphasizing the persistence of the bearish trend. Furthermore, the future cloud (red) suggests ongoing bearish pressure. That happens because the leading span A (green edge) stays below the leading span B (red edge).

These conditions suggest that ADA’s setting is leaning bearish, with limited signs of immediate trend reversal unless further consolidation occurs.

ADA Price Prediction: Will Cardano Go Back To $1?

The ADA EMA lines formed a death cross on December 20, with the short-term EMA crossing below the long-term EMA, a classic bearish signal indicating sustained downward momentum. If this downtrend continues, Cardano price could face further downside, potentially testing support levels at $0.78.

Should bearish pressure persist and $0.78 fail to hold, ADA price could decline further to $0.65 or even $0.519. This would mark a possible 42% correction from current levels.

ADA Price Analysis.ADA Price Analysis. Source: TradingView

However, if the trend reverses and bullish momentum builds, ADA price could reclaim higher levels, starting with resistance at $0.99 and $1.039.

Breaking these levels would signal stronger buying interest and could pave the way for a rally toward $1.18. That would represent a potential 31% upside from current levels.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
The $589 XRP Dream: Believers Aren’t ‘Delusional’ Enough, Expert SaysA known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
Author  NewsBTC
Dec 17, Tue
A known market analyst sees the $6 per coin prediction for XRP crypto being claimed by some experts as too conservative.
placeholder
Justin Sun clarifies ETH liquidation rumorsRumors about Justin Sun selling Ethereum came up after big transfers during a price drop, but he clarified it was just moving funds between wallets.
Author  Cryptopolitan
5 hours ago
Rumors about Justin Sun selling Ethereum came up after big transfers during a price drop, but he clarified it was just moving funds between wallets.
placeholder
Elon Musk’s D.O.G.E could crash the US economyD.O.G.E isn’t even a real government department. It’s an advisory group. It can’t implement anything without Congress or Trump signing off.
Author  Cryptopolitan
5 hours ago
D.O.G.E isn’t even a real government department. It’s an advisory group. It can’t implement anything without Congress or Trump signing off.
placeholder
Bitcoin Faces Short-Term Uncertainty as Exchange Inflows Surge and Tether Liquidity DropsBitcoin has recently experienced mixed market movements, with analysts closely monitoring on-chain data to understand the short-term trajectory of the leading cryptocurrency.
Author  NewsBTC
5 hours ago
Bitcoin has recently experienced mixed market movements, with analysts closely monitoring on-chain data to understand the short-term trajectory of the leading cryptocurrency.
placeholder
MicroStrategy Wants to Issue More Shares to Fuel Bitcoin PurchasesMicroStrategy has scheduled a special shareholder meeting to approve changes in its equity issuance strategy to fund additional Bitcoin acquisitions.
Author  Beincrypto
5 hours ago
MicroStrategy has scheduled a special shareholder meeting to approve changes in its equity issuance strategy to fund additional Bitcoin acquisitions.
goTop
quote