Cardano (ADA) price remains one of the top 10 cryptocurrencies by market capitalization, despite being down more than 9% in the last seven days. Recent data suggests that ADA’s downtrend is losing momentum, with its ADX falling sharply, indicating a weakening of the downtrend.
Whale activity, which has stabilized since December 22, also suggests less selling pressure, pointing towards a consolidation phase. Traders are now closely monitoring the $0.859 support level as its strength will determine whether ADA price can recover towards $1 or face further declines to $0.76.
ADA Downtrend Is Losing Strength
ADA’s Average Directional Index (ADX) is currently at 14.96, a sharp drop from over 30 just three days ago. This significant drop indicates a weakening of the trend strength, suggesting that the current downtrend is losing momentum.
The sharp drop in the ADX highlights the diminishing conviction in the current bearish move, which could lead to a period of price consolidation or even a possible reversal if buyers begin to re-enter the market.
ADA ADX. Source: TradingView
ADX measures the strength of a trend on a scale from 0 to 100, without indicating the direction of the trend. Values less than 20 suggest a weak or no trend, while values greater than 25 usually indicate a strong trend. With Cardano ADX at 14.96 and falling, the current downtrend lacks enough strength to sustain significant bearish momentum.
In the short term, this could mean that ADA price may stabilize or move sideways unless new selling pressure emerges to reinforce the trend. On the contrary, the lack of selling activity could allow buyers to regain control and initiate a possible recovery gradually.
Cardano whales stopped selling
The number of ADA whales, defined as addresses containing between 10 and 100 million ADA, reached a monthly high of 409 on December 14 before beginning to decline.
Since December 22, this number has stabilized, fluctuating between 404 and 405, indicating that major holders have stopped significant accumulation or distribution activity.
Addresses that have between 10 million and 100 million ADA. Source: Sentiment
Monitoring whale activity is essential because these large holders can significantly affect the price of an asset through their buying or selling behavior. The recent stabilization of ADA whale addresses suggests that the market is in a consolidation phase, with neither strong accumulation nor distribution occurring.
In the short term, this could mean that ADA price may remain range-bound as whale activity lacks decisive directional momentum.
Cardano Price Prediction: Can ADA Recover $1 Levels in December?
Cardano price is currently trading near a critical support level at $0.859. If this support holds strong and ADA price manages to regain an uptrend, the price could test the $0.91 resistance next.
Breaking this resistance may pave the way for ADA price to rise further, potentially testing levels around $0.99 and $1, indicating a significant recovery and a shift towards bullish momentum.
ADA pricing analysis. Source: TradingView
On the other hand, if the downtrend regains strength and the support at $0.859 does not hold, Cardano price could face further bearish pressure.
In this scenario, the price could continue to decline, testing the next major support level at $0.76. That would mark a possible further 11.6% correction for ADA.
