Cardano (ADA) is showing positive signs after a prolonged bearish streak. Despite falling nearly 8% in the past 30 days, the coin has gained nearly 3% in the past 24 hours, suggesting that momentum is building. With a market cap of $26 billion and a 30% increase in trading volume over the past day to $903 million, ADA could be on the verge of a trend reversal.
BBTrend Consolidates After 6 Days of Decline
Cardano’s BBTrend indicator has just moved into positive territory after a six-day losing streak. On March 12, BBTrend hit -26.13, but has now risen to 0.83, signaling a change in market momentum.
While this is still a low, the move back into positive territory could be a sign of increased buying pressure. BBTrend measures the strength and direction of price relative to the Bollinger Bands – a positive value reflects an uptrend, while a negative value indicates a downtrend. If ADA’s BBTrend crosses above 10, this would reinforce the bullish signal.
DMI Shows Sellers Are Losing Control
Cardano’s DMI indicator shows that the ADX has dropped from 17.5 to 13.7 over the past 24 hours, indicating that the downtrend is weakening. An ADX below 20 typically reflects a market without a clear trend, or that is fluctuating in a narrow range.
Additionally, ADA’s +DI has increased from 15.96 to 19.1, while the -DI has dropped from 25.48 to 19.31. This suggests that selling pressure is waning, while buying pressure is starting to increase. As the +DI and -DI lines are about to cross, ADA could be in the early stages of a bearish-to-bullish trend reversal.
Can ADA Surpass $1.10?
Although the short-term EMA remains below the long-term EMA, indicating a bearish bias, signals from BBTrend and DMI are suggesting a potential change.
If ADA can confirm the bullish trend, it will first test the resistance at $0.77. A successful breakout could open the way for the price to rise to $1.02, and even hit $1.17 – a high not seen since March 3.
Conversely, if selling pressure returns, ADA could retest the key support at $0.64. If this level is broken, the price could fall further to $0.58 – the lowest since February 28.
Summary
Cardano is showing signs of recovery with waning selling pressure and improving technical indicators. While further confirmation from factors such as trading volume and a stronger ADX is needed, the short-term outlook is becoming more positive. Investors should keep a close eye on support and resistance levels to make appropriate trading decisions.
