Cardano (ADA) experienced a 25% price increase over the last week, crossing a critical resistance level defined by the upper line of a descending triangle pattern. This bullish movement initially generated excitement, as hopes grew for a possible return to ADA’s two-year peak of $1.32.
Despite this momentum, the rally has paused. Over the last two days, reduced buying activity has caused ADA’s price to stabilize within a narrow range.
Momentum Slows as Cardano Buyers Step Back
Last week, ADA’s upward momentum allowed it to break free from a bearish descending triangle pattern that had constrained its price in prior weeks. This bullish breakout initially raised optimism about reclaiming the two-year high of $1.32.
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However, a decline in buying pressure has resulted in price consolidation. ADA’s price now hovers between a resistance level at $1.11 and support at $1.05.
Cardano Descending Triangle Pattern. Source: TradingView
Periods of narrow-range trading often reflect indecision in the market, where buyers and sellers are evenly balanced. Such consolidation phases usually precede significant price movements as traders await a breakout or breakdown to signal the next trend.
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With technical indicators pointing to declining buyer activity, ADA may surrender some of its recent gains. For instance, the Aroon Up line’s downward trend highlights weakening bullish momentum since this consolidation began.
Cardano Aroon Up Line. Source: TradingView
The Aroon indicator assesses trend strength and direction by analyzing the time elapsed since an asset’s most recent highs (Aroon Up) and lows (Aroon Down).
A declining Aroon Up line suggests fewer recent highs, indicating fading bullish strength or a possible shift toward bearish momentum.
Adding to this bearish outlook is ADA’s negative weighted sentiment, which currently stands at -0.71.
