- Cardano ($ADA) has dropped nearly 8% over the past month but saw a 3% rebound in the last 24 hours, with trading volume surging 30% to $903 million, signaling early signs of recovery.
- Technical indicators like BBTrend and DMI suggest bearish momentum is fading, but a stronger trend shift is needed, with traders watching for a breakout above $0.77 to confirm bullish momentum.
- If ADA breaks resistance, targets of $1.02 to $1.17 are in play, but failure to hold support at $0.64 could push prices back to $0.58, marking a return to February lows.
Cardano ($ADA) has been under selling pressure, slipping nearly 8% over the past month. However, in the last 24 hours, the token has gained almost 3%, signaling a possible shift in momentum.
ADA’s market cap stands at $26 billion, while trading volume has surged 30%, hitting $903 million. Technical indicators are beginning to hint at a potential trend reversal—let’s break down what’s happening.
ADA BBTrend Turns Positive After Six Days in the Red
Cardano’s BBTrend indicator has just flipped positive, marking the end of a six-day losing streak that saw it hit a low of -26.13 on March 12. Now sitting at 0.83, the indicator suggests a possible shift in momentum after an extended downtrend.
While still relatively low, this move into positive territory could signal strengthening buying pressure.
The BBTrend (Bollinger Band Trend) measures price movement strength relative to the Bollinger Bands. Positive values indicate an uptrend, while negative values suggest a downtrend.
Since March 8, ADA’s BBTrend hasn’t broken above 10, meaning bullish momentum is still weak. Traders typically look for values above 10 to confirm stronger upward movement.
Cardano’s DMI Suggests Sellers Are Losing Control
The DMI (Directional Movement Index) shows ADA’s ADX has dropped to 13.7 from 17.5, indicating a weaker trend over the past day. Although the ADX is still signaling a trend, the lower reading suggests diminishing strength.
The Average Directional Index (ADX) gauges the strength of a trend, no matter the direction. Readings above 25 indicate a strong trend, while below 20 suggests a range-bound market.
Currently, ADA’s +DI has risen to 19.1 from 15.96, while the -DI has dropped to 19.31 from 25.48, meaning bearish pressure is fading, and bullish momentum is gradually building.
With the +DI and -DI lines nearing a crossover, ADA could be in the early phases of shifting from a downtrend to an uptrend—though a stronger ADX is needed to confirm this move.
Can ADA Reclaim $1.10 Soon?
ADA’s EMA (Exponential Moving Average) lines have shown consolidation, but the overall structure remains bearish. Short-term EMAs are still below the long-term ones, signaling caution.
However, with both BBTrend and DMI flashing early bullish signals, sentiment may be shifting.
If ADA confirms an uptrend, it will first challenge resistance at $0.77. A breakout beyond this could pave the way for $1.02 and even $1.17, marking ADA’s first move above $1 since March 3.
On the flip side, if bearish pressure resurfaces, ADA could retest support at $0.64. A break below this level may push prices as low as $0.58, marking a return to levels last seen on February 28.
For now, all eyes remain on whether ADA can sustain this momentum and break resistance.
