Cardano ADA Price Movement Analysis: A Complete Explanation

At the time this article was published, the value of Cardano (ADA) had decreased by more than 6%. However, overall, ADA still recorded a significant increase of nearly 40% over the past seven days. 

The previous sharp rise, which pushed ADA’s price up to $1.15, was triggered by the inclusion of this asset into the United States’ strategic cryptocurrency reserves. 

However, in recent days, ADA has struggled to maintain its position above the $1 level.

ADA Potential Raising Concerns

Doubts have now emerged among some users about the decision to include ADA in the reserves, potentially raising concerns about its price stability. 

Additionally, there is a noticeable slowdown in asset accumulation by large investors (whales), and the resistance level at $1 has proven to be quite strong. 

The future price movement of ADA will heavily depend on its ability to regain upward momentum or, conversely, face stronger selling pressure.

Cardano (ADA) Uptrend Strength Analysis

As quoted from Beincrypto, Cardano (ADA) is currently showing an ongoing uptrend, although its intensity has decreased. 

This is reflected in the Average Directional Index (ADX) value, which is at 32.5, after previously reaching 43.7 in the last three days. 

This decline occurred after the price surge triggered by the inclusion of ADA in the U.S. strategic cryptocurrency reserves.

Despite the decrease in ADX, the value remains above 25, indicating that the uptrend still has strength. 

However, it should be noted that the upward momentum is not as strong as before. The ADX is an indicator used to measure the strength of a trend on a scale from 0 to 100.

A value above 25 suggests a strong trend, while a value below 20 indicates weak momentum or no trend.

Read More: How to Buy Cardano (ADA)

Is ADA Still in an Uptrend?

With the ADX at 32.5, ADA remains in an uptrend, though it is likely not as strong as it was a few days ago. 

If the ADX continues to decrease, there is potential for the trend to lose momentum, which could lead to price stagnation or consolidation. 

However, if the ADX stabilizes or increases again, ADA may be able to sustain its uptrend and reach higher resistance levels.

Movement of Large Cardano Holders: Latest Analysis

There has been a slight decrease in the number of Cardano holders with between 1 million and 10 million ADA coins. 

This was observed after a significant increase between March 1 and 4, when their numbers rose from 2,442 to 2,471. 

Currently, the number stands at 2,463, indicating that some large investors have reduced their holdings following the earlier increase.

This change may be influenced by discussions among cryptocurrency market participants about the potential inclusion of ADA and XRP into the U.S. strategic digital asset reserves. 

Monitoring the activity of these large holders is crucial as they have the power to influence market liquidity, price fluctuations, and the overall trend direction.

Has Cardano Been Marked by Price Accumulation?

An increase in the number of large holders typically signals accumulation, which could potentially drive the price upward

Conversely, a decrease in their numbers could indicate profit-taking or a reduction in confidence.

With the number of large holders currently slightly below the previous peak, the recent rate of ADA price increase may slow down if more large holders decide to sell. However, if accumulation continues, it could support the continuation of the upward price trend.

Can Cardano Reach $1 Again Soon?

According to the EMA indicator for Cardano from Beincrypto, the price movement appears positive, with the short-term moving average above the long-term moving average.

However, despite the positive signals, Cardano has struggled to break the $1 level in recent days. 

This occurred after a significant price correction following a sharp 71% increase on March 2. This suggests that although upward momentum remains, the $1 resistance level has proven to be quite strong.

Could ADA Potentially Decline?

If the ongoing uptrend turns into a downtrend, ADA’s price could test support at $0.818. If the price falls below this level, there is a possibility that it could drop further to $0.75. Stronger selling pressure could push the price down to $0.63 or even $0.58.

On the other hand, if ADA regains upward momentum, the price could attempt to break the $1 level again. 

If it successfully surpasses this key resistance, the price could surge toward $1.17, a level nearly reached during the price spike on March 2.

Conclusion

Cardano (ADA) faces significant challenges in maintaining the $1 level amid market uncertainty. 

The value of Cardano (ADA) has dropped by over 6%, but overall, ADA still records a significant increase of nearly 40% over the past seven days.

The debate surrounding the U.S. reserves and cautious market sentiment are key factors influencing ADA’s price. Investors should remain alert to potential volatility and conduct thorough research before making investment decisions.

FAQ

Cardano (ADA) Uptrend Strength Analysis

Cardano (ADA) is currently showing an ongoing uptrend, although its intensity has decreased. This is reflected in the Average Directional Index (ADX) value, which is at 32.5, down from 43.7 in the past three days.

Is ADA Still in an Uptrend?

With the ADX at 32.5, ADA remains in an uptrend, but it is likely not as strong as it was a few days ago. If the ADX continues to decrease, the trend could lose momentum, leading to price stagnation or consolidation.

Has Cardano Been Marked by Price Accumulation?

An increase in the number of large holders typically indicates accumulation, which could push the price higher. Conversely, a decrease could indicate profit-taking or a decline in confidence.