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Cardano Price Surge Slows: Is the Uptrend Losing Steam?

Cardano (ADA) has seen a stunning 265% price increase over the past 30 days, making it one of the top-performing cryptocurrencies among the top 10.

While Ripple (XRP) outpaced ADA, the surge reflects renewed investor confidence. However, recent data suggests that the bullish momentum may be slowing.

ADA Trend Weakens Amid Slowing Momentum

The Average Directional Index (ADX) for Cardano dropped from 33 to 19.4 between December 3 and now, signaling a weakening trend. This decline indicates that while ADA remains in an uptrend, its strength has diminished.

ADA ADX. Source: TradingView

In early December, ADA surged by 27%, aligning with its ADX peak of 33. However, with the ADX now below 25, the market shows signs of consolidation. Further upward movement may occur, but at a slower pace.

If buyers regain control, the ADX could strengthen again, supporting a more robust rally.

Whale Activity Stabilizes After November Accumulation

Whale activity played a significant role in ADA’s November surge. Addresses holding 10 million to 100 million ADA grew from 393 on November 4 to 409 by November 20. This period of accumulation signaled strong confidence in Cardano’s potential.

Addresses Holding Between 10 Million and 10 Million ADA. Source: Santiment

Since November 20, however, the number of these whale addresses has stabilized around 405-408, with the current count at 405. This plateau suggests caution among major holders, who appear to be waiting for clearer market signals before making further moves.

This stabilization could keep ADA’s price in a consolidation phase until new factors drive the market.

Price Outlook: Can ADA Stay Above $1?

Cardano’s EMA lines indicate the uptrend remains intact, with short-term averages above long-term ones. However, weakening momentum and stable whale activity point to potential consolidation.

If buying pressure resumes, ADA could test resistance at $1.32 and potentially hit $1.40, a level not seen since 2022.

On the downside, if momentum weakens further, ADA might retest support at $1.15. Failure to hold this level could lead to a deeper correction, with prices dropping to $1.03 or even $0.87, representing a possible 27% decline.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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