Cardano (ADA) price is losing steam as momentum fades

The price of Cardano (ADA) has risen an impressive 265% in the last 30 days, becoming one of the biggest gainers among the top 10 largest coins, behind only Ripple (XRP).

The accumulation of whales, which provided confidence in November, has now stabilized, suggesting a cautious approach by large holders.

ADA’s current uptrend appears to be fading

The Cardano ADX has fallen to 19.4 from 33 on December 3rd, signaling a weakening trend. This decline suggests that the strength of ADA’s recent uptrend is fading, although the price remains on an uptrend. Between December 1st and 3rd, the ADA price increased by almost 27%, which corresponds to an ADX value of 33.

A lower ADX suggests that while the trend is continuing, it is lacking the previously observed momentum, potentially indicating consolidation or a slower pace of growth.

The ADX (Average Directional Index) measures the strength of a trend, with values ​​above 25 indicating a strong trend and values ​​below 25 indicating a weak or consolidating market. The ADA ADX at 19.4 reflects a weakening trend despite the ongoing uptrend, suggesting that further upside could come at a slower pace.

However, if buyers regain momentum, ADX could rise again, which would support a stronger continuation of the current uptrend.

Cardano whales are now stable after accumulating in November

The number of addresses with 10 to 100 million ADA saw significant growth in early November, increasing from 393 on November 4th to 409 on November 20th.

This increase indicates a strong accumulation of whales during this period, indicating increased confidence in Cardano’s potential. Such activity often precedes larger price movements, as large holders can significantly influence the market.

However, since November 20th, the number of these whale addresses has stabilized and fluctuates between 405 and 408, with the current number at 405. This plateau suggests that while previous accumulation has slowed, these large holders are maintaining their positions.

This stability could indicate a cautious approach by whales and signal that they are waiting for clear market signals before making further moves. This could potentially keep ADA price in a consolidation phase for now.

ADA price prediction: Can it fall below $1?

Cardano price continues to be in an uptrend as reflected in the EMA lines, with the short-term averages still above the long-term ones. However, signals from ADX and the stabilization of whale stocks suggest that this uptrend is losing momentum.

If buying pressure strengthens again, ADA could test resistance at $1.32 and, if it continues higher, could potentially rise to $1.40, a price level not seen since 2022.

On the other hand, if the current trend weakens further and a downtrend emerges, ADA price could retest its next support at $1.15.

Failure to maintain this level could result in deeper corrections, with possible price drops to $1.03 or even $0.87, a possible 27% decline from current levels.