Cardano (ADA) has been trading below $1 for the past month, struggling to regain the bullish momentum it had in late 2024. While ADA has shown signs of recovery, technical indicators are still giving mixed signals. The BBTrend indicator has returned to positive territory, but is still far from its previous high.
The Ichimoku Cloud shows that ADA is in an indecisive phase, as the coin tries to stabilize but there is no clear confirmation of an uptrend. With key resistance at $0.83 and support at $0.65, ADA’s next move will be crucial in determining whether it can break above its current trading range or continue to weaken towards the $0.50 region.
ADA’s BBTrend Returns to Positive Territory
Cardano’s BBTrend indicator is currently at 1.12, rebounding after falling to -0.77 yesterday. During the period from February 13 to February 18, BBTrend remained positive, peaking at 12.3 on February 14, reflecting strong bullish momentum during that period.
However, the recent drop and subsequent recovery show that ADA is experiencing high volatility, with price action oscillating between bullish and bearish phases.
Although BBTrend has returned to positive territory, it is still significantly lower than its recent peak, signaling that ADA's bullish momentum has weakened but has not yet fully turned bearish.
Cardano BBTrend Indicator | Source: TradingView
BBTrend, or Bollinger Band Trend, is an indicator that measures the strength of a trend based on Bollinger Bands. The indicator fluctuates between positive and negative values, with positive territory signaling an uptrend and negative territory indicating bearish market conditions.
ADA's BBTrend at 1.12 shows that the coin is still maintaining a weak bullish structure, but has not yet seen a strong breakout momentum. If BBTrend continues to rise, it could confirm that buying pressure is returning, supporting a sustainable uptrend.
Conversely, if BBTrend falls back to negative levels, it would signal that ADA is struggling to maintain its bullish momentum, increasing the risk of the price continuing to trade sideways or even entering a new downtrend.
Ichimoku Cloud Shows Mixed Scenario
Cardano's Ichimoku Cloud indicator is currently painting a mixed picture. The price is currently trading within the green cloud, indicating an indecisive state of the market.
The green cloud shows that ADA is trying to stabilize, but with the orange Senkou Span B line still horizontal, the market has no clear momentum in any direction.
The Tenkan-sen (conversion line-purple) is just below the Kijun-sen (base line-orange), indicating that short-term momentum is still weak. The fact that ADA has held its position within the cloud suggests that it has not yet confirmed a clear uptrend or downtrend, making the next breakout especially important to determine the direction of the market.
Cardano Ichimoku Cloud indicator | Source: TradingView
Meanwhile, the Chikou Span (green lag line) is above several past price levels, suggesting a possible bullish shift, but further confirmation is needed.
If ADA can break above the cloud and establish a solid position above the orange Kijun-sen, it could signal a trend reversal and a move to the upside.
Conversely, if ADA fails to maintain its position within the cloud and slides below, selling pressure could increase again, pushing the price lower. The current Ichimoku Cloud setup suggests that ADA is at a crucial junction, with the next move likely to determine the overall trend in the coming days.
Cardano Could Soon Test $0.83
Currently, Cardano is trading within a defined range, with resistance at $0.83 and support at $0.65.
The short-term moving averages are clustered close together but remain below the long-term averages, suggesting that despite some consolidation, the overall trend lacks strong upside momentum. If ADA can trigger a sustained uptrend, it could move towards testing the $0.83 resistance level.
If it succeeds in breaking above this level, ADA could open the door to further upside, with the next targets at $0.9 and further to $0.98 – the highest level since late January.
ADA/USDT 4-hour chart | Source: TradingView
Conversely, if the current momentum is not enough to create a strong uptrend and the bears take over, ADA could lose the important support level at $0.65.
If it breaks below this level, ADA could fall further, to around $0.50 – a drop of 34% from the current price.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
