Cardano bull (ADA) regaining the advantage - Is the recovery phase coming soon?

Cardano (ADA) has dropped nearly 8% in the past 30 days but has risen nearly 3% in the past 24 hours as short-term bullish momentum begins to emerge.

ADA's market capitalization is currently at $26 billion, while the trading volume in the past day has increased by 30%, reaching $903 million. Technical indicators are beginning to show early signs of a potential trend reversal after a period of downward price pressure. Here is a detailed look at the signals and key price levels shaping ADA's outlook for this week.

BBTrend of ADA turns positive after 6 days

Cardano's BBTrend has just turned positive, ending a six-day streak in the negative zone, with a lowest point of -26.13 on 3/12. The indicator is currently at 0.83, signaling a momentum shift after the recent price decline.

Although this is still a relatively low level, returning to the positive zone may be an initial sign that buying pressure is increasing.

BBTrend (Bollinger Band Trend) measures the strength and direction of price movement relative to the Bollinger Band. A positive value indicates an uptrend, while a negative value reflects a downtrend.

Since 8/3, ADA's BBTrend has not exceeded the 10 level, and the current level is 0.83, indicating that although selling pressure has eased, the momentum is still weak. For a stronger price increase signal, traders often look for BBTrend to exceed the 10 level, confirming a more decisive growth phase.

Cardano's DMI indicator shows that the bear camp is losing control

Cardano's DMI chart shows that the ADX has dropped from 17.5 to 13.7 in the past 24 hours, indicating weakening trend strength. Although the ADX still signals a trend, the lower reading indicates a decreased momentum compared to the previous day.

The average directional index (ADX) measures the strength of a trend regardless of its direction.

Levels above 25 indicate a strong trend, while levels below 20 often signal a weak or sideways market. Currently, ADA's +DI has risen from 15.96 to 19.1, while -DI has decreased from 25.48 to 19.31, indicating that the downward price momentum is weakening as upward pressure gradually builds.

With the +DI and -DI lines approaching the intersection point, ADA seems to be in the early stages of reversing from a potential downtrend to an uptrend, although a stronger ADX will be needed to confirm a clear trend change.

Can Cardano Soon Surpass $1.10?

ADA's EMAs have shown signs of accumulation over the past few days, although the overall structure still remains bearish. Short-term EMAs are still below long-term EMAs.

However, recent signals from both BBTrend and DMI indicate that this trend may be changing, with the first signs of price momentum forming.

If Cardano's price confirms an uptrend, it could challenge the resistance level at $0.77 first. Breaking above this level could pave the way towards $1.02 and even $1.17, marking the first time ADA has traded above $1 since 3/3.

On the contrary, if selling pressure returns, ADA may retest the support level at $0.64, and if it breaks below this level, the price could drop to $0.58, returning to levels not seen since 2/28.

You can check the coin price here.

Disclaimer: The article is for informational purposes only, not investment advice. Investors should research carefully before making decisions. We are not responsible for your investment decisions

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SN_Nour

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