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Cardano (ADA) is facing renewed selling pressure, but signs of potential bullish momentum are emerging amidst market volatility.
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The cryptocurrency’s trading volume has diminished significantly, suggesting traders may be awaiting clearer market signals.
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As noted by a COINOTAG source, “A break above $0.77 could trigger a significant price rally towards the $1.02 zone.”
Current market trends for Cardano (ADA) suggest emerging bullish momentum, key levels to watch, and insights for potential traders.
Cardano BBTrend Is Now Positive, But Still At Low Levels
Cardano’s BBTrend indicator has recently registered at 2.25, representing the highest value since early March. This uptick follows a prolonged period of negative readings, indicating a **potential shift in market sentiment**.
For the prior nine days, from March 18, the BBTrend oscillated between negative values, showcasing the indecisive trading environment. Now, the ascent to 2.25 signals a potential shift towards **bullish conditions**, albeit from a low base.
The BBTrend, derived from **Bollinger Bands**, indicates the strength and direction of price movements. Values exceeding zero usually signify bullish sentiment while those below suggest bearish trends. The present reading of 2.25 hints at an upward movement in price combined with expanding volatility, which could herald the beginning of a sustained upward trend if backed by increasing trading volume.
ADA DMI Shows The Consolidation Could End Soon
Recent analysis of Cardano’s Directional Movement Index (DMI) highlights a drop in the Average Directional Index (ADX) to 17, indicating weakened trend momentum. This is a stark decline from 25.79 recorded the previous day, revealing a shift towards consolidation.
The ADX serves as an essential tool in the DMI framework to evaluate the strength of trends, regardless of direction. Typically, an ADX value below 20 signifies consolidation, while above 25 indicates a strong trend is developing.
As part of the DMI analysis, the Positive Directional Indicator (+DI) has dropped significantly, while the Negative Directional Indicator (-DI) has increased, implying a shift in momentum control toward sellers. This suggests that while the **overall trend is weakening**, bearish pressure is potentially increasing.
Can Cardano Return To $1 Before April?
The current market dynamics imply that ADA is within a corrective phase following a previous failed attempt to breach the pivotal resistance at $0.77. If the downward trend persists, the immediate support level of $0.69 becomes critical. A decline below this threshold could lead to more significant losses, pushing ADA potentially towards the $0.64 range.
However, if Cardano can regain traction and push back toward the $0.77 resistance, it may foster a breakout scenario. A significant **break above** this resistance, especially with strong volume support, could open avenues towards the $1.02 price level, a milestone not crossed since early March.
Conclusion
To summarize, while Cardano is currently experiencing significant **bearish pressure**, technical indicators indicate that potential shifts toward bullish momentum could be on the horizon. Traders should closely monitor key price levels of $0.69 and $0.77. A decisive move either way will determine ADA’s trajectory in the coming weeks.
