Cardano (ADA) is facing renewed pressure, with its price falling nearly 5% on Wednesday. As ADA trading volume slipped by 19%, down to $751 million, the cryptocurrency’s indicators showed a mix of bullish and bearish signals. While Cardano’s price faces downward momentum, there are early signs that could suggest a trend shift if the right conditions materialize.

BBTrend Turns Positive, Signaling Possible Trend Shift

The BBTrend indicator, which measures the strength and direction of trends based on price behavior relative to the Bollinger Bands, has shifted to a positive reading of 2.25. This marks the first positive reading since March 8, a notable shift after the BBTrend spent over a week in neutral-to-bearish territory. The recent uptick from -2.14 on March 19 signals a potential change in market dynamics.

Although the 2.25 value isn’t an extreme bullish signal, it does indicate that momentum may be starting to favor buyers after a period of indecision. As the price moves out of the neutral range, the growing volatility could pave the way for an upward trend if the indicator continues to rise, especially with increasing volume and a breakout above resistance levels.

DMI Indicates Market Consolidation with Bearish Pressure

While the BBTrend shows potential for an upward shift, the DMI (Directional Movement Indicator) presents a more cautious picture. The Average Directional Index (ADX) has fallen sharply to 17, down from 25.79 just a day earlier. This decline in the ADX signals a weakening of trend strength, indicating that the market may be in a period of consolidation.

The ADX measures the strength of a trend, with values under 20 generally pointing to a lack of strong direction. Additionally, the crossing of the +DI (Positive Directional Indicator) and -DI (Negative Directional Indicator) lines adds further bearish pressure. The +DI has fallen to 19.38, while the -DI has surged to 20.36. This suggests that sellers are beginning to gain control, signaling potential downside pressure for ADA in the short term.

Support and Resistance Levels to Watch

With the current mixed signals from the indicators, Cardano’s price action remains in a state of flux. ADA’s price recently failed to break through the key resistance level at $0.77, causing a shift in momentum. If the downward pressure continues, the next key support level to watch is $0.69. Should this level fail to hold, ADA could face further downside, potentially dropping to the $0.64 range.

However, if ADA can reverse its momentum and push past the $0.77 resistance level again, there could be a bullish reversal. A strong breakout above $0.77, accompanied by increasing volume, could set the stage for a rally toward the $1.02 zone, taking ADA above the $1 mark for the first time since early March.

Looking Ahead: Short-Term Outlook

In the short term, the market for ADA appears to be in consolidation, with mixed technical signals making it difficult to predict the next clear trend. The BBTrend suggests potential for an upward move if conditions improve, while the DMI shows increased bearish pressure, signaling a possible continuation of the current downward movement.

Traders should keep an eye on the key support levels around $0.69 and $0.64, as well as the resistance level at $0.77. If ADA can reclaim $0.77 with strong volume, it could pave the way for a more substantial bullish breakout. However, if the current consolidation continues, ADA might face more challenges before any upward momentum can fully take hold.

As the market continues to evolve, ADA’s price will be shaped by how the technical indicators develop and how buyers and sellers adjust their positions in response to the ongoing market conditions.