Cardano Shows Mixed Signals as Price Slides
Cardano's price drops again, with indicators showing mixed signals as bullish momentum begins to form while bearish pressure continues to grow.
Cardano (ADA) is under renewed pressure, showing a noticeable drop in value along with a decline in trading activity. Despite this, certain technical indicators are offering mixed signals—some suggesting that bearish momentum is building, while others hint at a possible turnaround.
One of the more optimistic signals comes from the BBTrend indicator, which has just turned positive after over a week of being flat or negative. Although still at modest levels, this shift indicates that buying pressure might be returning. The BBTrend tool tracks how price behaves in relation to the Bollinger Bands and helps assess the strength and direction of the current market movement. A value above zero signals a tilt toward bullish momentum. While the current reading is not yet strong, it marks a meaningful change in direction compared to the recent downtrend.
On the other hand, the DMI (Directional Movement Index) paints a more cautious picture. The ADX (Average Directional Index), which measures overall trend strength, has fallen significantly. At the same time, the negative directional index (-DI) has now crossed above the positive index (+DI), showing growing bearish pressure in the market. This suggests that sellers are gaining control, while buyers are losing ground.
This setup typically reflects a market in consolidation—one where price is moving sideways with no clear trend but leans toward further downside. If sellers continue to dominate, ADA could break below a key support area, opening the door for additional losses. However, if the token regains momentum, a return toward a crucial resistance level could shift the narrative and even signal the start of a larger recovery.
For ADA to return to its recent highs, it would need to clear that resistance level with strong volume and renewed interest. Such a breakout could lead to a rally toward higher zones not seen in weeks. This scenario would likely require a bullish crossover in DMI, where the positive index overtakes the negative one, along with an increase in the ADX to confirm trend strength.
In short, Cardano is at a technical crossroads. Indicators are split between early signs of recovery and signals of continued weakness. Much depends on whether buyers can regain control soon—or whether the current downward pressure will continue to weigh on the asset in the near term.
