Cardano’s Wild Ride: Can ADA Hold the Line or Is a Bigger Drop Coming?

Cardano ($ADA) surged 60% after being included in the U.S. Crypto Strategic Reserve, but quickly corrected below $1, raising concerns over increasing selling pressure.
Technical indicators show fading bullish momentum, with BBTrend dropping from 7.1 to -13.4 and DMI signaling a rise in selling pressure, suggesting a potential deeper retracement.
Key support sits at $0.90, with downside targets at $0.81 and $0.65 if selling continues, while a recovery above $1.16 could reignite bullish momentum toward $1.32.

Cardano (ADA) exploded 60% overnight, soaring past $1.10 after former U.S. President Donald Trump announced its inclusion in the U.S. Crypto Strategic Reserve. The rally fueled a wave of bullish momentum, with key technical indicators like BBTrend and DMI flashing strong uptrend signals.

But the hype was short-lived. ADA has already slipped below $1, with selling pressure mounting. Now, traders are left wondering: Was this just a quick pump, or can ADA stabilize and reclaim its gains?

Cardano’s BBTrend Indicator Signals a Surge in Selling Pressure

The massive price spike sent ADA’s BBTrend indicator rocketing from -14.5 to 7.1—a dramatic shift that suggested strong bullish momentum. The BBTrend, derived from Bollinger Bands, helps measure volatility and trend strength, making it a critical tool for assessing potential reversals.

But here’s the problem—the BBTrend has nosedived back to -13.4, wiping out nearly all its bullish momentum. A reading this low suggests that selling pressure has intensified, and ADA could be heading for deeper retracement unless fresh buyers step in.

Historically, when the BBTrend moves from extreme highs back into negative territory, a correction is usually in full swing. If Cardano can’t hold above key support levels, we might be looking at a prolonged sell-off.

DMI Shows Bulls Losing Grip, But the Fight Isn’t Over Yet

The Directional Movement Index (DMI) paints a slightly different picture. While the ADX (Average Directional Index) surged from 28.3 to 43.7—indicating a strong trend—the bullish momentum is clearly fading.

+DI (Positive Directional Index) peaked at 66.5 but has now dropped to 41, a sign that the rally is losing steam.
-DI (Negative Directional Index) climbed from 4.7 to 14.1, signaling that sellers are creeping back in.

A high ADX with a falling +DI and a rising -DI suggests that while the uptrend is still in play, bears are gaining traction. If this pattern continues, ADA could slide into a deeper correction—or at least enter a consolidation phase while the market recalibrates.

ADA’s Next Move: Will It Hold or Collapse Below $0.80?

Cardano’s surge above $1.10 was impressive, but with momentum fading, it’s struggling to stay above $1. The technical indicators suggest that ADA is at a crucial crossroads—either it stabilizes and makes another push higher, or it tumbles back toward support levels.

Right now, ADA is testing the $0.90 support level. If it breaks, we could see a quick drop to $0.81, and if that doesn’t hold, $0.65 is the next major line of defense.

On the flip side, if bullish momentum returns, ADA could push back toward $1.16, and a clean break above that would set the stage for a run to $1.32, its highest price since December 2024.

Bottom Line: Can ADA Hold Up or Will Selling Pressure Take Over?

This whirlwind rally and correction have left Cardano traders on edge. The BBTrend collapse suggests a cooling off period, while the DMI indicates a battle between bulls and bears.

The coming days will be critical—if buyers step in, ADA could reclaim lost ground. But if selling pressure keeps mounting, we may see a much deeper correction.

One thing’s for sure: Cardano is at a make-or-break moment.