ADA is showing signs of bullishness – What is the next destination?

Cardano (ADA) recorded a 4% increase on Tuesday, approaching the $0.65 threshold, indicating a positive signal in the recovery trend. Technical indicators are gradually leaning towards the bulls, with BBTrend shifting to the positive zone for the first time after several quiet trading sessions, while the DMI indicator is also beginning to reflect a significant increase in buying pressure.

Notably, ADA is approaching the completion of a potential golden cross on the EMA lines — a technical factor that often signals a strong breakout possibility if the resistance zone ahead is conquered. With bullish momentum being reinforced and key technical levels nearing, Cardano is entering a critical phase that could shape the short-term trend in the near future.

Cardano signals early recovery as BBTrend turns positive

The BBTrend indicator of Cardano has just risen back into the positive zone, reaching a level of 0.11 after four consecutive sessions deeply in the negative zone. Although this increase is still quite modest, it could be the first signal that the recent downtrend is showing signs of stabilizing.

BBTrend indicator of Cardano | Source: TradingViewBBTrend, or Bollinger Band Trend, is a technical analysis tool used to assess the strength and direction of a trend based on the elasticity of the Bollinger Band indicator. When the Bollinger Band widths expand and BBTrend shifts to positive values, it often reflects an increase in volatility in a positive direction. Conversely, a prolonged negative BBTrend usually signals that the market is lacking upward momentum and tends to move sideways or decline.

Although the level of 0.11 is not strong enough to establish a clear upward trend, the fact that this indicator has escaped from the negative zone and entered the positive zone is a potential turning point. This development may indicate that selling pressure is weakening, and if buying pressure is reinforced, the price of ADA has the potential to enter a recovery phase.

Analysts are currently closely monitoring to assess whether this positive signal can be maintained in the upcoming sessions. If BBTrend continues to improve, it could set the stage for a more significant breakout in the Cardano market.

Bulls regain control as the uptrend begins to form

The Directional Movement Indicator (DMI) of Cardano is recording clear signals of a shift in market momentum. Specifically, the ADX (Average Directional Index) – a measure of trend strength – has risen to 17.79, marking a significant increase from yesterday's level of 13.77.

Although the ADX is currently still below the threshold of 20 — indicating a weak trend or one that has not truly formed — its continuous upward momentum is a sign that market strength is accumulating and a clearer trend may be emerging.

Directional Movement Indicator (DMI) of Cardano | Source: TradingViewThe highlight is in the +DI indicator (representing buying strength), as it surged sharply from 16.30 to 26.38 in just one day. Although it has slightly retreated from the recent peak of 29.57, +DI is still maintaining a dominant position compared to -DI (selling strength), which has significantly decreased from 22.72 to only 13.73.

The increasing divergence between +DI and -DI reflects a shift towards the buyers, indicating that the bulls are gradually regaining control after a period of being overshadowed by the bears.

If the upward momentum of ADX continues alongside the dominance of +DI, the market may soon establish a clear upward trend for Cardano.

Cardano approaches a bullish crossover as bulls aim for a breakout

The price of Cardano (ADA) is approaching a positive technical turning point, as the exponential moving averages (EMA) show signs of forming a "golden cross" in the upcoming trading sessions.

Golden cross is the phenomenon where the short-term EMA crosses above the long-term EMA — a technical signal that often precedes the beginning of a strong upward trend.

ADA/USDT 4-hour chart | Source: TradingViewIf this pattern is confirmed and ADA successfully breaks above the important resistance level at $0.668, the upward momentum could be strengthened, with the next targets set at $0.709 and $0.77 — price levels that have not been reached since the end of March.

However, the bullish scenario will be invalidated if ADA cannot maintain its current momentum. A reversal down to the support zone of $0.594 could be the first sign of a weakening trend. If this support level is breached, ADA risks continuing to plummet to the level of $0.511.

Price movements around the resistance zone $0.668 are expected to play a key role in determining the next trend of ADA in the short term.

Disclaimer*: The article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions*

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