Cardano (ADA) has increased by more than 12% in the last seven days and is now trading above $0.70 for the first time since late March. Trading volume is also rising, up 33% in the last 24 hours to $723 million.
Despite the price recovery, some technical indicators suggest that ADA's momentum is weakening and approaching key decision-making points. Here's a closer look at the current situation of Cardano at the beginning of the new week.
Weakening BBTrend of Cardano after a positive series
The BBTrend indicator for Cardano is currently at 7.55, down from 13.27 just three days ago. This sharp decline shows that the strength of the recent price expansion has cooled, although the asset has shown positive daily closes for the last four days.
The decline of BBTrend indicates that while ADA has been moving upwards, the underlying momentum of expansion is losing intensity.
This change highlights the potential slowdown that may affect ADA's ability to sustain further growth without renewed buying pressure. BBTrend, or the Bollinger Bands trend indicator, measures the strength of the price trend based on the expansion or contraction of the Bollinger Bands.
An increase in BBTrend typically signals strong momentum and increasing volatility, while a decrease in BBTrend indicates weakening momentum or the beginning of a consolidation phase.
With BBTrend ADA at 7.55, the indicator still points to some positive momentum but is significantly weaker than at the beginning of the week.
If BBTrend continues to decline, ADA may enter a consolidation phase, but if buying pressure returns, the token could continue its current positive series.
ADA Faces Uncertainty as Buyers and Sellers Struggle for Control
The directional movement index of Cardano (DMI) shows that its average directional index (ADX) is currently at 17.14, which is a significant decrease from 31 two days ago.
This sharp decline signals that the strength of the recent trend of ADA has significantly weakened. Meanwhile, +DI (positive directional indicator) is 19.95, up from 15.96 a few hours ago but still below 26 two days ago.
-DI (negative directional indicator) is 19.07, slightly down from 21.16 earlier but up compared to 14.49 two days ago, reflecting mixed momentum between buyers and sellers. ADX measures trend strength without indicating its direction.
Readings above 25 usually indicate a strong trend, while readings below 20 indicate a weak or consolidating market. With ADA's ADX at 17.14, trend strength is weak, and neither buyers nor sellers have a clear advantage at the moment.
Close values between +DI and -DI indicate that Cardano may enter a period of sideways movement if neither bulls nor bears regain stronger control in the near future.
The bullish structure of Cardano faces a critical test near $0.69
Exponential moving averages (EMA) for Cardano indicate an upward trend, with short-term EMAs positioned above long-term ones.
However, the price of Cardano has repeatedly tested the support level at $0.69 and is trading very close to it.
This price action signals that while the overall trend remains positive, bullish momentum has weakened, and support at $0.69 is becoming a critical zone. If ADA loses support at $0.69, the next target levels for a decline will be around $0.63, then $0.609, and potentially $0.59 if selling pressure intensifies.
On the other hand, if buyers return and strengthen the upward trend, ADA could rise to retest resistance at $0.746.
A breakout above $0.746 could open the way for movement towards $0.77, offering a strong bullish setup if momentum strengthens again.#BinanceSquare #Write2Earn #Squar2earn #Binance #crypto $ADA
