Cardano (ADA) has been one of the more active altcoins in recent days, showing an impressive price recovery. Over the past seven days, the digital asset has surged more than 12%, surpassing the $0.70 mark for the first time since late March. In fact, Cardano’s trading volume has spiked by 33%, reaching $723 million within the past 24 hours. However, despite this positive price movement, some key technical indicators suggest that the momentum behind Cardano’s rally may be slowing, pointing to a potential shift in market conditions.

BBTrend Indicator Shows Weakening Momentum

The BBTrend indicator, based on Bollinger Bands, has been one of the most notable technical tools for assessing the strength of Cardano’s rally. The BBTrend measures the rate at which volatility is expanding or contracting. Just three days ago, the BBTrend for ADA was at a high of 13.27, reflecting a period of strong bullish momentum. However, as of now, it has fallen to 7.55, signaling that the recent upward movement may be losing its intensity.

A declining BBTrend often points to diminishing volatility, which could be a precursor to a consolidation phase. Although ADA has managed to post positive daily closes for the last four days, the weakening of the BBTrend suggests that the token may struggle to maintain its bullish pace without fresh buying pressure.

The BBTrend indicator is an important tool for traders, as it signals shifts in momentum before the price action itself becomes apparent. The sharp drop in this indicator highlights the need for further confirmation from the market, as ADA may face a period of sideways price action if buyers do not step in soon.

DMI Signals Potential Indecision Between Buyers and Sellers

Another key technical indicator, the Directional Movement Index (DMI), has also shown signs of weakening. The ADX, which measures the strength of a trend, has dropped significantly, falling from 31 to 17.14 over just two days. The ADX typically falls below 20 when a trend is weak or in consolidation, suggesting that ADA’s uptrend is currently losing strength.

In addition, the +DI (positive directional indicator) is at 19.95, up from 15.96, but still far below the previous highs of 26 seen a few days ago. The -DI (negative directional indicator), which tracks the strength of downward price pressure, sits just slightly below at 19.07, signaling a balance between buying and selling pressure. The close proximity of these two indicators indicates that neither side—buyers nor sellers—has a clear advantage at the moment. This neutral state suggests that ADA may face a period of indecision, which could result in a consolidation phase unless one side gains dominance.

Traders use the DMI to assess whether the price trend will continue or stall. When the +DI and -DI are close together, it often indicates that a market is preparing for a period of low volatility or ranging behavior. As a result, Cardano’s short-term price outlook remains uncertain unless a clearer trend emerges.

Critical $0.69 Support Zone in Focus

Looking at Cardano’s price action, the ADA/USD pair has repeatedly tested the $0.69 support level, which has become an important pivot point. As ADA hovers near this critical support zone, it is clear that the bulls are still attempting to defend the price at this level, which was previously tested multiple times in the past. The short-term exponential moving averages (EMAs) are still positioned above the long-term EMAs, maintaining a bullish structure. However, the price’s repeated testing of the $0.69 support hints at a weakening of bullish momentum.

If Cardano fails to hold above the $0.69 support, the next downside targets could be around $0.63 and $0.609. A drop below $0.609 would signal a much more significant trend reversal, with further declines likely to follow. In the event that ADA breaks down below these levels, the next target would be the $0.59 level.

On the flip side, if ADA successfully holds above $0.69 and momentum returns, the next resistance level to watch is at $0.746. A breakout above $0.746 could trigger a move toward $0.77, providing a strong bullish setup. If this bullish scenario plays out, ADA could see a fresh round of buying pressure that might reignite the uptrend.

What’s Next for Cardano?

Cardano has faced significant volatility in recent months, and despite its recent price recovery, the technical indicators now suggest that the momentum is waning. ADA is at a crossroads, and its next move will depend heavily on how it reacts to key levels of support and resistance. If the bulls can maintain control and push the price above $0.746, Cardano could return to a strong uptrend. However, if the support at $0.69 breaks, ADA may enter a consolidation phase or even see further downside.

In conclusion, while Cardano’s recent performance has been impressive, traders should remain cautious, as the weakening indicators suggest that the token may struggle to maintain its upward trajectory without renewed buying support. As always, closely monitoring key levels such as $0.69 and $0.746 will be essential for gauging Cardano’s next major move in the market.