XRP faces bearish pressure as the price approaches $2.00: a head and shoulders pattern suggests a potential drop to $1.63 if the $2.00 support fails, but a breakout above $2.00 could push it back towards $3.00.
Network activity down by 50%: active wallets dropped from 202,250 to 101,169, raising concerns about decreased participation and potential weak demand.
Investor sentiment is divided: retail traders remain pessimistic (-1.88 crowd sentiment), while institutions (1.82 smart money sentiment) see a buying opportunity, creating a tug-of-war in market direction.
Cardano (ADA) has been on a tough slide, losing 34% last month and 15% in just the past week. With ADA's market cap now at $22 billion, the coin has remained stuck below the dollar level for over a month, reflecting a persistent bearish grip on the asset.
Technical indicators paint a worrying picture - the ADX is rising, indicating that selling pressure remains dominant. However, if key support levels hold, there is a chance for a turnaround in March.
The ADX for Cardano confirms a strong bearish trend
Currently, the ADX for ADA is 46.8, a sharp jump from 10.3 on February 23. The Average Directional Index (ADX) measures trend strength, but not trend direction.
ADX below 20? Weak or non-trending market.
ADX above 25? Strong trend.
ADX above 40? Extremely strong trend - momentum is real.
With ADA's ADX rising past 46, alongside its declining price, this indicates that the bears are in complete control. Unless buying interest rises quickly, further downside seems more likely.
Cardano whales decline to their lowest levels since January
Large funds are moving away from ADA - a concerning sign. The number of whale addresses (holding between 1 million and 10 million ADA) has dropped from 2,477 on February 21 to 2,454 now - the lowest number since January 9.
Tracking whale activity is crucial, as their movements can dictate market liquidity and overall sentiment.
Fewer whales? Indicates declining confidence and potential selling pressure.
More whales? Indicates potential accumulation and price support.
This decline in whale activity may signal more downside, as large players distributing their holdings often leads to successive sell-offs by smaller traders.
Will Cardano recover to one dollar in March?
ADA's EMA lines show a bearish setup, with the short-term EMA trending below its long-term counterparts - a classic indicator of ongoing bearish momentum.
If the current bearish trend intensifies, ADA may test the $0.50 support level.
Losing $0.50 could open the door for a decline towards $0.32, the lowest level since November 2024.
On the other hand, if the $0.50 level holds, ADA may attempt a recovery:
The first step would be a breakout above $0.65.
If momentum increases, the levels of $0.83 and $0.90 may come into play.
A sustained rise above $1 could finally break the bearish grip for the first time since late January.
Final thoughts - critical weeks await ADA
Currently, ADA stands at a crossroads. If whale activity continues to decline and selling pressure remains high, expect more downside. But if buyers step in at key support levels, March may bring a much-needed turnaround.
Watch the $0.50 and $0.65 levels - these could determine the next big move for ADA.
#Cardano #ADA #Square #squarecreator #Squar2earn
