Cardano (ADA) signals growth after the accumulation phase.

Over the past four days, Cardano (ADA) has fluctuated within a narrow range from $0.60 to $0.64, clearly reflecting the market's hesitant sentiment as it searches for a clearer trend. Key technical indicators show a mix of weak bullish momentum and initial signals of potential new buying pressure.

Notably, the activity of ADA "whales" is showing signs of increase, while the short-term moving averages (EMA) are starting to tilt towards an upward trend. This raises expectations for a potential breakout. However, the ADX indicator remains low, along with the cautious sentiment of investors, making the volatility outlook for ADA still heavily dependent on whether this coin can break above the resistance level or hold the key support area.

The trend of Cardano remains fragile as ADX has yet to surpass a critical threshold

ADX indicator ( Average Directional Index – the average directional index ) of Cardano is currently at 16.66, slightly bouncing back after plummeting from 28.35 to a low of 12 in just four days.

This development reflects a clear weakening in trend strength, but at the same time reveals initial signals of a potential recovery. ADA seems to be making an effort to re-establish an uptrend, and the slight recovery of ADX may be a sign that market momentum is beginning to flicker back.

The ADX (Average Directional Index) of Cardano | Source: TradingViewHowever, with the ADX still below the 20 threshold, the current trend strength is quite weak and lacks definite confirmation. The ADX is a tool that measures the strength of a trend regardless of direction, with a scale from 0 to 100. A level below 20 usually indicates that the market lacks a clear trend, while above 25 truly signals the formation of a strong trend.

With the ADX of ADA currently still at a low level, the developing trend is still fragile. If this index continues to rise and surpasses the 25 mark, it will be a confirmation signal for a clearer trend – potentially an uptrend. Until that happens, investors must remain cautious in a market that is still very volatile.

ADA whales are back – but haven't surpassed the recent peak

The number of wallets holding between 1 million and 10 million ADA – a group commonly referred to as "whales" – has seen a significant increase during the period from April 13 to 17, rising from 2,384 to 2,417 wallets, reaching the highest level since the beginning of the month.

However, this upward momentum quickly cooled off as the number of wallets slightly decreased to 2,416, indicating that the current accumulation momentum is still weak and lacks the sustainability to create a significant change in market sentiment.

The number of addresses holding between 1 million and 10 million ADA | Source: Santiment. Despite a recent surge, the total number of whale wallets is still significantly lower than the peak levels recorded in previous months – indicating that a cautious trend still prevails among large investors.

Monitoring the activities of whales is a key factor, as large transactions from this group can create significant waves in the market through concentrated buying and selling actions.

Typically, an increase in the number of whale wallets is seen as a positive indicator of confidence within the institutional investor community – a signal that could pave the way for strong bullish trends. However, current data reflects a rather cautious accumulation and shows signs of weakening, implying that there is still hesitation or a lack of clear confidence from the "big players".

If this accumulation trend is not maintained or increased in the near future, ADA may face significant obstacles in rebuilding solid upward momentum in the short term.

Breakthrough could take ADA to a three-week high

Currently, the price of Cardano (ADA) is moving sideways within a narrow range, being constrained between the resistance level of $0.64 and the important support zone at $0.59.

The exponential moving average lines (EMA) reflect the ongoing accumulation phase in the market. However, the short-term EMA lines are beginning to trend upwards, raising expectations for the potential formation of a "golden cross" - a signal that often indicates a strong upward trend about to occur.

ADA/USDT 4-hour chart | Source: TradingViewIf ADA can break through the resistance level of $0.64, the upward momentum could be strengthened and push the price up to $0.66 and $0.70, respectively. In a positive scenario, a strong bullish wave could even bring ADA closer to the $0.77 region – a price level not recorded in over three weeks.

However, the bullish outlook still carries significant risks. If the support level of $0.59 is breached, the downtrend could return, dragging ADA down to a lower support zone at $0.51 and possibly triggering bearish sentiment in the market.

With the current technical signals indicating a mix between an accumulation phase and initial signs of recovery, the next trend of ADA will largely depend on whether the bulls or bears dominate in sensitive price areas.

Disclaimer*: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions*

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