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Cardano (ADA) Dips 20% After Weekend Rally, Tests Key Support

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Cardano (ADA) surged 60% yesterday after Donald Trump announced that ADA would be included in the US crypto reserve, pushing its price above $1.10. This massive rally fueled strong bullish momentum, with key indicators such as BBTrend and DMI confirming the strength of the uptrend.

However, the excitement appears to be fading, as ADA has since corrected below $1, with technical signals suggesting that selling pressure is increasing. As traders assess whether ADA can sustain its gains or enter a deeper retracement, key support and resistance levels will be crucial in determining the next move.

Cardano BBTrend Shows the Selling Pressure Is Getting Stronger

Cardano experienced a strong price surge after being officially included in the US crypto reserve. This sudden increase in demand pushed ADA’s BBTrend indicator from a deeply negative -14.5 to 7.1 within a few hours, signaling a shift in momentum.

The BBTrend, a volatility and trend-following indicator derived from Bollinger Bands, helps traders gauge the strength and direction of price movements.

When the BBTrend crosses above zero, it suggests a bullish trend, while a reading below zero indicates bearish momentum. Extreme values, such as below -10 or above 10, typically signal overextended moves that may soon correct.

ADA BBTrend.
ADA BBTrend. Source: TradingView.

Following its peak at 7.1, ADA’s BBTrend has since reversed, plunging back to -13.4, suggesting that the initial excitement surrounding its inclusion in the US crypto reserve has faded.

Such a rapid decline indicates that bullish momentum has weakened significantly, and ADA could now be facing a period of retracement or consolidation.

A BBTrend reading this low typically aligns with strong selling pressure, which could mean further downside unless fresh buying interest emerges. If ADA fails to hold key support levels, its price may continue to slide, though a reversal in BBTrend back toward neutral territory would indicate stabilization.

ADA DMI Shows That Buyers Are Still In Control

Cardano has seen a significant increase in trend strength, as reflected in its Directional Movement Index (DMI). The Average Directional Index (ADX), which measures the strength of a trend, has surged from 28.3 to 43.7 following the announcement of ADA’s inclusion in the US crypto reserve.

A rising ADX above 25 suggests that a trend is gaining strength, while values above 40 typically indicate a strong and sustained movement, whether bullish or bearish.

The ADX does not indicate trend direction but rather its intensity, making it a key metric for assessing whether a move has the potential to continue or weaken.

ADA DMI.
ADA DMI. Source: TradingView.

Alongside this, ADA’s +DI (positive directional index) has dropped from its high of 66.5 yesterday to 41, signaling that bullish momentum has cooled off. Meanwhile, the -DI (negative directional index) has climbed from 4.7 to 14.1, showing that sellers are starting to push back.

The combination of a high ADX with a falling +DI and rising -DI suggests that while the trend remains strong, bullish dominance is fading, and selling pressure is increasing. If this trend continues, ADA could face a deeper retracement or a shift toward consolidation unless buyers regain control.

Cardano Could Fall Below $0.80 Soon

Yesterday, Cardano’s price surged by a massive 60% following its inclusion in the US crypto reserve, propelling it above $1.10.

However, a correction has taken place in the last few hours, bringing ADA back to the $1 level as the initial buying frenzy fades.

The technical indicators DMI and BBTrend suggest that the uptrend may be losing momentum, raising the possibility of a deeper retracement. If ADA fails to maintain its current levels and selling pressure intensifies, it could test the $0.90 support level.

ADA Price Analysis.
ADA Price Analysis. Source: TradingView.

A breakdown below this could open the door for further declines to $0.81 and $0.65, with a strong downtrend potentially driving ADA as low as $0.50.

On the other hand, if bullish momentum reignites, Cardano price could make another push higher, testing the $1.16 resistance level.

A breakout above this zone would indicate renewed strength, potentially driving the price up to $1.32, which would mark its highest level since early December 2024.

Whether ADA sustains its upward trajectory or continues its pullback will depend on how traders react to the recent price surge and whether fresh buying interest can outweigh the emerging selling pressure.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Solana (SOL) Plunges 20%—Key Support Levels Now in Focus

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

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At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.



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XRP Drops by 10% Again as the Altcoin Struggles to Hold Gains

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XRP surged 30% yesterday after being included in the US crypto reserve. This pushed its price above $2.90 for the first time in a month. This massive rally ignited strong bullish momentum, but the altcoin slumped 10% a day later.

XRP is seeing notable correction today, suggesting that profit-taking is underway. Whether the price can regain bullish momentum or continue its retracement will depend on key resistance and support levels, with traders closely watching $2.75 on the upside and $2.52 on the downside.

XRP RSI Is Neutral After Reaching Overbought Levels

XRP saw a significant surge in momentum after being included in the US crypto reserve. Its price rallied 30%, pushing its Relative Strength Index (RSI) to a peak of 84.5.

The RSI, a widely used momentum oscillator, measures the speed and change of price movements on a scale of 0 to 100. Readings above 70 indicate that an asset is overbought and could be due for a pullback. Readings below 30 suggest oversold conditions and a potential buying opportunity.

XRP’s RSI reached 84.5 – its highest level since December 2, 2024 – signaling extreme bullish sentiment, often preceding a short-term correction.

XRP RSI. Source: TradingView.

Now sitting at 63, XRP’s RSI has cooled off from its overbought zone, reflecting the recent retracement in price. While a reading above 60 still suggests bullish momentum, the decline from extreme levels could indicate that buying pressure is waning.

If RSI continues to decline toward the neutral 50 zone, XRP could see further consolidation or even a deeper pullback.

However, if buyers step in again and push RSI back above 70, it could signal renewed strength and another potential attempt at higher price levels.

Ichimoku Cloud Shows the Bullish Setup Is Still Here, But This Could Change

XRP Ichimoku Cloud chart analysis shows that the price saw a sharp breakout above the cloud (Kumo) following its 30% surge after being included in the US crypto reserve.

This breakout confirmed a strong bullish move, with XRP moving well above both the Tenkan-sen (blue line) and Kijun-sen (red line), signaling short-term and medium-term trend strength.

The sharp spike pushed XRP into overextended territory. However, as seen in the last few candles, a pullback has started, bringing the price closer to the Kijun-sen.

XRP Ichimoku Cloud.
XRP Ichimoku Cloud. Source: TradingView.

This suggests that while the uptrend remains intact, the market is reassessing its recent gains, and XRP is testing key short-term support.

If the price holds above the Kijun-sen, XRP price could consolidate before making another attempt at higher resistance levels.

However, if the correction deepens and XRP falls back toward the cloud, it could indicate a loss of momentum. The future cloud (Senkou Span A and B) remains bullish but with some flattening. That indicates that the market is at a pivotal point.

XRP Price Can Have a Hard Time to Reach $3

XRP surged to nearly $2.95 following its inclusion in the US crypto reserve, marking a sharp bullish move.

However, after this rapid climb, the price has started to correct in the last few hours, suggesting that some traders are taking profits.

The technical outlook now depends on whether the uptrend can regain strength. If buying pressure returns, XRP could test the $2.75 resistance again. A breakout above this level could see it retesting $2.96, which acted as a barrier during yesterday’s rally.

A successful move past this resistance would open the door to a push toward $3.15, marking the first time XRP has traded above $3 since February 1. The SEC dropping the case against XRP could be a potential drive for that.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView.

On the downside, if the correction continues and selling pressure increases, XRP price could find support at $2.52. A breakdown below this level would put the next key support at $2.36 in focus. Further declines could potentially drive the price toward $2.15 and $2.06.

This could be driven if more questions about the asset being included in the US crypto reserve start to emerge. Harrison Seletsky, director of business development at digital identity platform SPACE ID, told BeInCrypto that these assets are odd choices to the reserve:

“I’m certainly surprised that US President Donald Trump has chosen to announce a full-blown crypto strategic reserve, rather than just a Bitcoin strategic reserve, as everyone had been expecting. Beyond that, the choice of assets is also unusual. ETH and SOL make sense, given their strong and growing developer activity. But it’s not clear to me why XRP and ADA were included at all, considering they are virtually ghost chains compared to Ethereum and Solana. Indeed, the total value locked (TVL) and stablecoin capabilities on XRPL and Cardano are tiny compared to other ecosystem players – $80 million and $460 million, respectively. In my eyes, it somewhat delegitimizes the whole idea of crypto reserve assets like industry mainstays Bitcoin, Ether and Solana,” Harrison Seletsky told BeInCrypto.

If bearish momentum strengthens significantly, XRP could fall below the psychological $2 mark, with $1.77 emerging as the next major support level.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Ethereum Price Crashes to $2,000—Is More Downside Ahead?

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Este artículo también está disponible en español.

Ethereum price started a fresh decline from the $2,550 zone. ETH is now back below $2,200 and might decline further in the near term.

  • Ethereum started a fresh decline below the $2,350 support zone.
  • The price is trading below $2,250 and the 100-hourly Simple Moving Average.
  • There is a new bearish trend line forming with resistance at $2,160 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear the $2,160 and $2,250 resistance levels to start a recovery wave.

Ethereum Price Dives 15%

Ethereum price failed to clear the $2,550 resistance zone and started a fresh decline, like Bitcoin. ETH gained bearish momentum below the $2,400 and $2,350 support levels.

There was a clear move below the $2,250 support zone and the 100-hourly Simple Moving Average. The price even dived below the last low and tested the $2,000 zone. A low was formed at $2,003 and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $2,550 swing high to the $2,003 low.

Ethereum price is now trading below $2,250 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,080 level. The first major resistance is near the $2,150 level.

There is also a new bearish trend line forming with resistance at $2,160 on the hourly chart of ETH/USD. The main resistance is now forming near $2,275 and the 50% Fib retracement level of the recent decline from the $2,550 swing high to the $2,003 low.

Ethereum Price
Source: ETHUSD on TradingView.com

A clear move above the $2,275 resistance might send the price toward the $2,350 resistance. An upside break above the $2,350 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,450 resistance zone or even $2,500 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $2,160 resistance, it could start another decline. Initial support on the downside is near the $2,020 level. The first major support sits near the $2,000 zone.

A clear move below the $2,000 support might push the price toward the $1,880 support. Any more losses might send the price toward the $1,750 support level in the near term. The next key support sits at $1,640.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,000

Major Resistance Level – $2,160



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