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Cardano (ADA) price has increased an impressive 265% in the past 30 days, becoming one of the strongest rising coins in the top 10, second only to Ripple (XRP).
Accumulation from whales, which fueled confidence in November, has stabilized, suggesting a cautious approach from major investors.
The current trend of ADA seems to be fading
Cardano’s ADX index dropped to 19.4 from 33 on December 3, signaling a weakening trend. This decline shows that the strength of ADA’s recent uptrend is fading, although the price remains within an upward trajectory. Between December 1 and 3, ADA price increased nearly 27%, matching when its ADX peaked at 33.
A lower ADX shows that while the trend continues, it lacks the momentum it once had, which could indicate a correction or slower growth.
ADX (Average Directional Index) measures the strength of a trend, with values above 25 indicating a strong trend and below 25 suggesting a weak or consolidating market. ADA’s ADX at 19.4 reflects a weakening trend despite an evolving uptrend, suggesting that the upward move may be slowing.
However, if buyers regain momentum, ADX could rebound, supporting a strong continuation of the current trend.
Cardano whales have now stabilized after accumulating in November
The number of addresses holding between 10 million and 100 million ADA saw significant growth in early November, increasing from 393 on November 4 to 409 on November 20.
This increase indicates a strong accumulation from whales during this period, suggesting increased confidence in Cardano’s potential. Such activity often precedes major price movements, as large investors can significantly influence the market.
Since November 20, the number of these whale addresses has been stable, fluctuating between 405 and 408, with the current count at 405. This stability shows that, although the previous accumulation has slowed, these This large investor still maintains its position.
This stability could indicate a cautious approach from whales, hinting that they are waiting for clear signals from the market before making their next moves. This could keep ADA price in an accumulation phase for the time being.
ADA price prediction: Can it drop below 1 USD?
Cardano price remains in an uptrend, as reflected by its EMAs, with short-term averages remaining above long-term averages. However, signals from ADX and a steady accumulation from whales indicate that this trend is losing momentum.
If buying pressure regains strength, ADA could climb to test resistance at $1.32, with a stronger push possibly taking it to $1.40, a price not seen since 2022 .
On the other hand, if the current trend weakens further and a downtrend emerges, ADA price could retest the nearest support at $1.15.
Failure to hold this level could trigger a deeper correction, with a potential drop to $1.03 or even $0.87, representing a possible drop of up to 27% from current levels.
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