Cardano (ADA) has enjoyed an impressive 52% price increase in the last week, capturing the attention of investors. However, after this rally, the ADA price is showing signs of slowing momentum, with a 5% pullback in the last 24 hours. While the trend remains bullish, indicators are signaling that the strength of the price movement may be weakening, which could result in a short-term consolidation or a potential price correction.

Weakening Trend Momentum

One of the key indicators to track ADA’s price movement is the Average Directional Index (ADX), which measures the strength of the current trend. ADA’s ADX recently dropped from 70 to 45.02 over a two-day period. This sharp decline indicates a reduction in the strength of the ongoing uptrend, suggesting that the rapid pace of price increases might be losing momentum.

Generally, an ADX above 25 is considered a strong trend, but with the ADX dropping toward 45, traders should be cautious about potential volatility. While ADA is still in an uptrend, the decreasing ADX points to a weakening trend and warns of potential headwinds in the coming days.

Whale Accumulation Stalls

Whale activity, or large holders of ADA, has been a critical driver behind its recent surge. Between October and early November, the number of addresses holding between 1 million and 10 million ADA tokens grew steadily. By November 8, the number of these whale addresses increased from 2,432 to 2,451. However, whale accumulation has since plateaued, with minimal changes observed in the number of these large wallets between November 11 and November 13.

This slowdown in whale activity could indicate a shift in sentiment among larger investors. When whale accumulation stalls, it can lead to a price consolidation phase or potential profit-taking, especially after a substantial surge like the one Cardano has experienced. This could result in ADA trading sideways for a period before its next significant move.

Key Resistance Levels to Watch

At current prices, ADA faces important resistance zones at $0.62 and $0.67. If ADA struggles to break through these resistance levels, the price could stall or pull back. While Cardano’s price remains above its short-term Exponential Moving Averages (EMA), which supports the bullish trend, the recent drop below the shortest EMA line raises questions about the sustainability of the uptrend.

If ADA is able to break through resistance and continue its rally, the next target would be the $0.80 level, which represents a potential 50% increase from current levels. This price point has not been seen since March, making it a crucial psychological level for ADA holders. However, failure to break resistance could lead to a period of consolidation or downward movement.

Potential Support Zones

If the upward momentum falters, ADA could face a pullback toward key support zones around $0.47 and $0.41. These support levels would act as buffers for the price, providing potential buying opportunities if ADA’s price dips. A pullback to these levels could offer traders a chance to buy at discounted prices before a potential rebound.

Conclusion: Cardano’s Near-Term Outlook

While Cardano’s overall trend remains positive, the current weakening of momentum and potential price resistance suggests that a short-term consolidation or correction could be on the horizon. ADA is at a critical juncture where it could either regain strength and break through resistance levels or experience a pullback toward support. Investors should keep a close eye on the $0.62 and $0.67 resistance levels, as breaking these could send ADA toward higher targets. If the price fails to maintain its bullish trend, a pullback to $0.47-$0.41 would not be surprising. Regardless of the short-term price action, ADA’s long-term outlook remains strong, supported by ongoing developments in the Cardano ecosystem.