Cardano (ADA) has shown signs of recovery, but whale activity remains stable, indicating that large holders are not yet aggressively accumulating. If ADA sustains its momentum and forms a golden cross, it could push toward $1.16. However, failure to hold support levels may trigger another downturn.
ADX Indicates Strengthening Trend
Cardano’s Average Directional Index (ADX) has surged from 16.2 to 21.7 within a day, signaling growing momentum. The ADX, which measures trend strength on a scale from 0 to 100, suggests a weak trend below 20, while values above 25 indicate a strong trend. With ADA’s ADX now surpassing 20, the altcoin appears to be transitioning from a downtrend to an uptrend.
If the ADX continues rising beyond 25, it would confirm stronger bullish momentum. However, for ADA to establish a clear uptrend, it must maintain buying pressure and avoid a decline in momentum.
Whale Activity Remains Unchanged
The number of Cardano whale addresses—holding between 1 million and 10 million ADA—stands at 2,466 and has remained stable in recent weeks. Whale movements are crucial as they can significantly influence price trends through large-scale buy or sell actions.
The current stability in whale holdings suggests that major investors are waiting for clearer signals before making significant moves. If whales start accumulating, it could indicate confidence in an extended rally. Conversely, if whale activity declines, it may signal growing selling pressure and a potential price drop.
ADA Price Forecast: Can It Reclaim $1?
ADA’s exponential moving averages (EMAs) show short-term bullish momentum. If a golden cross—where the 50-day EMA crosses above the 200-day EMA—occurs, ADA could break through resistance at $0.90. A successful breakout may lead to further gains toward $0.98 and ultimately $1.16, marking its first return above $1 since mid-January.
However, if ADA fails to sustain its uptrend, it could retest support at $0.65. A breakdown below this level might trigger a deeper correction to $0.50, representing a 37% decline.
Also Read: BNB Leads Crypto Surge: Will Cardano Follow With a 27% Rally?
With momentum indicators strengthening but whale activity remaining cautious, ADA’s next move hinges on market sentiment and volume influx in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
