What's next for Cardano after a 21% weekly surge and a cooling momentum?

Source: Yellow Original Title: What’s Next for Cardano After a 21% Weekly Surge and Cooling Momentum?

Original Link: https://yellow.com/es/news/what-s-next-for-cardano-after-a-21-weekly-increase-and-cooling-momentum Cardano rose 21% in seven days and 7% in 24 hours, but technical signals indicate a weakening of momentum despite the rally. The asset now faces a potential trading range of 9% between $0.39 and $0.43, as trend strength and momentum cooling create contradictory market conditions.

What happened: rally momentum

Cardano continues to trade within an upward trend structure on the 12-hour chart, with the 20-period exponential moving average (EMA) approaching the 50-period exponential moving average.

This setup often signals a strengthening of momentum when short-term exponential moving averages cross above long-term ones.

However, between December 9 and January 6, Cardano’s price tended downward while the Relative Strength Index trended upward.

This hidden bearish divergence indicates a slowdown in momentum rather than a trend reversal, although a candle close below $0.43 would confirm a lower high formation and increase the risk of a deeper correction.

Why it matters: range formation

The $0.39 level acts as a short-term support necessary to maintain the bullish structure. A break above $0.43 would invalidate the bearish divergence and allow momentum to rebuild, with potential targets at $0.48 and $0.60 if strength accelerates.

Until one of these levels is broken, data points to a range between $0.39 and $0.43, representing a 9% trading “box.”

The trend remains bullish and holders are not selling, but momentum needs time to readjust before the next directional move.