Cardano (ADA) Bulls Gain Ground as Selling Pressure Weakens

Cardano (ADA) is down nearly 8% over the past 30 days but has gained almost 3% in the last 24 hours as short-term momentum picks up.

The token’s market cap stands at $26 billion, while its trading volume has surged 30% in the past day, reaching $903 million. Technical indicators are starting to show early signs of a potential trend reversal after a period of bearish pressure. Here’s a closer look at the key signals and price levels shaping ADA’s outlook this week.

ADA BBTrend Is Now Positive After 6 Days

Cardano’s BBTrend has just turned positive, ending a six-day streak in negative territory, which included a low of -26.13 on March 12. The indicator is now sitting at 0.83, signaling a shift in momentum after the recent downtrend.

While this is still a relatively low reading, the move back into positive territory could be an early sign of strengthening buying pressure.

ADA BBTrend. Source: TradingView.

The BBTrend (Bollinger Band Trend) measures the strength and direction of price movement relative to the Bollinger Bands. Positive values indicate an uptrend, while negative values point to a downtrend.

Since ADA’s BBTrend hasn’t risen above 10 since March 8, the current reading of 0.83 suggests that, although the bearish pressure has eased, momentum remains weak. For a stronger bullish signal, traders would typically look for the BBTrend to push above 10, confirming a more decisive upward move.

Cardano DMI Shows Sellers Are Losing Control

Cardano’s DMI chart shows that its ADX has dropped to 13.7 from 17.5 in the past 24 hours, suggesting a weakening trend strength. While the ADX is still signaling a trend, the lower reading points to reduced momentum compared to the previous day.

The Average Directional Index (ADX) measures the strength of a trend, regardless of its direction.

ADA DMI. Source: TradingView.

Readings above 25 indicate a strong trend, while readings below 20 often signal a weak or range-bound market. Currently, ADA’s +DI has risen to 19.1 from 15.96, while the -DI has dropped to 19.31 from 25.48, showing that bearish momentum is fading as bullish pressure slowly builds.

With the +DI and -DI lines close to crossing, ADA appears to be in the early stages of attempting to reverse from a downtrend to a potential uptrend, though a stronger ADX would be needed to confirm a solid trend shift.

Will Cardano Rise Above $1.10 Soon?

ADA’s EMA lines have shown signs of consolidation over the past few days, though the overall structure remains bearish. Short-term EMAs are still positioned below the long-term ones.

However, recent signals from both the BBTrend and DMI indicators suggest that this trend could be shifting, with early signs of bullish momentum building.

ADA Price Analysis. Source: TradingView.

If Cardano’s price manages to confirm an uptrend, it could first challenge the resistance at $0.77. A breakout above this level may open the path toward $1.02 and even $1.17, marking the first time ADA trades above $1 since March 3.

On the downside, if bearish pressure returns, ADA could retest support at $0.64, and a breakdown below this could push prices as low as $0.58, revisiting levels not seen since February 28.

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