Cardano (ADA) is currently under sustained downward pressure, with technical indicators highlighting a firm bearish trend. The Average Directional Index (ADX) and other trend signals suggest that sellers are firmly in control, casting doubt on the potential for a near-term reversal.
Key Indicators Signal Strong ADA Downtrend
Cardano’s ADX level recently surged to 36.76, up significantly from around 17 just days ago. The ADX, which measures trend strength, typically indicates a strong trend when above 25. This reading confirms that ADA’s current downtrend is gaining momentum, and further selling pressure seems likely.
Bearish Ichimoku Cloud Formation for Cardano
The Ichimoku Cloud indicator also points to a bearish outlook for ADA. Trading below the cloud indicates downward pressure, with red cloud coloration suggesting strong resistance for upward moves. The Tenkan-sen and Kijun-sen lines are above ADA’s current price, reinforcing the likelihood that sellers will maintain control unless the price breaks through this resistance zone.
EMA Indicators Reinforce Downtrend Signals
Cardano’s Exponential Moving Averages (EMAs) show a bearish configuration. All EMAs currently sit above ADA’s price, with short-term EMAs positioned below long-term ones. This alignment, combined with the recent formation of a death cross, points to continued downward pressure. If this trend holds, ADA may test its support at $0.31. However, should buying interest grow, ADA could aim for a potential 9% recovery to its next resistance at $0.36.
ADA’s Next Move: What to Expect?
For ADA to reverse the current trend, it would need to break through key resistance levels, particularly the Ichimoku cloud and the EMA lines. Until then, traders are likely to see a continuation of the current bearish sentiment, with any recovery hinging on a shift in market sentiment toward buyers.
