Cardano (ADA) is facing mounting bearish pressure, with technical indicators pointing to a deepening downtrend. A sharp rise in the Average Directional Index (ADX) and a bearish Ichimoku Cloud setup indicate that ADA could struggle to reclaim key resistance levels. Unless buyers step in with significant volume, ADA’s price may continue its downward trajectory.
Cardano ADX Confirms Intensifying Downtrend
The ADX, a key trend strength indicator, has surged from 11.2 to 44 in just three days. While ADX does not indicate direction, a reading above 40 signals a dominant market move. Given that ADA is in a downtrend, this spike suggests increasing bearish momentum.
With ADX above 25, the trend is considered strong, and at 44, it points to an even more entrenched bearish phase. If selling pressure persists, ADA could retest lower support levels, making a reversal increasingly difficult unless buying activity significantly improves.
Ichimoku Cloud Analysis: Bearish Signals Dominate
ADA’s Ichimoku Cloud setup further reinforces the bearish outlook. The price is trading well below the cloud, signaling strong downside momentum. Additionally, the future cloud is turning bearish, suggesting prolonged selling pressure.
The Tenkan-sen (blue line) remains below the Kijun-sen (red line), highlighting short-term bearish sentiment. The Chikou Span (green line) also lags far behind the price, further validating the negative outlook. For ADA to stage a recovery, it must break back above the cloud and establish it as support—an unlikely scenario unless market conditions shift.
Can Cardano Reclaim $1?
ADA is currently testing resistance at $0.78, with key support at $0.519. If the downtrend persists and this support is lost, the next major level to watch is $0.32—its lowest point since November 2024.
A break below $0.519 could trigger an accelerated decline, while a market-wide recovery could see ADA attempt to reclaim $0.78. If bullish momentum builds, a move to $0.87 is possible, and in an optimistic scenario, ADA could target $1—a 40.8% upside. However, for this to happen, buying pressure must increase substantially.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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