Cardano (ADA) price currently remains in the top 10 Cryptocurrencies by market capitalization, despite falling more than 9% in the past seven days. Recent data shows that ADA’s downtrend is losing momentum, with the ADX index falling sharply, hinting that the bearish trend is weakening.
Whale activity has stabilized since December 22, also indicating a decline in selling pressure, heading towards a consolidation phase. Traders are now closely watching the $0.859 support level, as its strength will determine whether ADA price can rebound to $1 or continue to fall to $0.76.
ADA’s Downtrend Is Losing Momentum
ADA’s Average Directional Index (ADX) is currently at 14.96, down sharply from levels above 30 just three days ago. This significant decline indicates a weakening of trend strength, implying that the current downtrend is losing momentum.
The sharp drop in ADX highlights the diminished level of confidence in the current bearish price movement, which could lead to a period of price consolidation or even a reversal if buyers start to re-enter the market.
ADX measures the strength of a trend on a scale from 0 to 100, without indicating the direction of the trend. Values below 20 indicate a weak or non-existent trend, while values above 25 typically imply a strong trend. With Cardano’s ADX at 14.96 and decreasing, the current downtrend lacks the strength to sustain significant bearish momentum.
In the short term, this could mean ADA price could stabilize or move sideways unless new selling pressure emerges to consolidate the trend. Conversely, a lack of selling activity could allow buyers to regain control and initiate a potential gradual recovery.
Cardano Whales Stop Selling
The number of ADA “whales,” defined as addresses holding between 10 million and 100 million ADA, reached a monthly peak of 409 on December 14 before starting to decline.
Since December 22, the number has been stable, fluctuating between 404 and 405, suggesting that large holders have paused significant accumulation or distribution activity.
Monitoring whale activity is important because these large holders can significantly impact the price of an asset through their buying or selling behavior. The recent stabilization of the number of ADA whale addresses suggests that the market is in a consolidation phase, with no strong accumulation or distribution occurring.
In the short term, this could mean that ADA price could remain range-bound as whale activity lacks directional momentum.
Cardano Price Forecast: Could ADA Recover to $1 in December?
Cardano price is currently trading near critical support at $0.859. If this support holds and ADA price resumes an uptrend, the price could test resistance at $0.91 next.
A break of this resistance could pave the way for ADA prices to climb higher, potentially testing levels around $0.99 and $1, signaling a significant recovery and a shift towards bullish momentum. price.
On the other hand, if the downtrend regains strength and the $0.859 support fails to hold, Cardano price could face further downside pressure.
In this situation, the price could continue to decline, testing the next key support at $0.76. That would mark a possible further downside correction of up to 11.6% for ADA.
