Cardano (ADA) price has risen by 4% in the last 24 hours, attempting to reclaim the $1 price level, despite being down 12% over the past week. The recent rebound comes as ADA shows signs of stabilizing following a period of intense selling pressure.
ADA’s ADX highlights that the strength of its previous downtrend has been weakening, providing room for a potential shift in momentum. However, its Ichimoku Cloud and EMA indicators still signal uncertainty.
Cardano Downtrend Could Be Losing Its Strength
Cardano Average Directional Index (ADX) is currently at 33.7, showing a significant decrease from its recent peak of 53.2 just three days ago. ADX is a technical indicator used to measure the strength of a trend, whether bullish or bearish, on a scale from 0 to 100.
Values above 25 typically indicate a strong trend, while those below 20 suggest weak or absent momentum. The drop in ADA ADX suggests that the strength of its previous downtrend has waned, aligning with its efforts to recover an uptrend after a period of bearish activity between January 7 and January 9.
At its current level, the ADX reflects a moderate trend, signaling that while the downtrend is losing intensity, the uptrend hasn’t yet fully established itself. If ADA manages to sustain buying momentum, the decreasing ADX could indicate an opportunity for a price rebound as selling pressure weakens.
However, without strong directional movement in the market, ADA price may remain in a consolidation phase, awaiting further catalysts to define its next significant move.
Ichimoku Cloud Still Shows a Bearish Setup
The Ichimoku Cloud chart for Cardano is currently trading below the red cloud, which is typically a bearish signal. The red cloud, formed by the Senkou Span A (green line) and Senkou Span B (orange line), reflects overhead resistance, and its downward slope further emphasizes bearish sentiment.
The blue line (Tenkan-sen) is slightly below the orange line (Kijun-sen), confirming that the recent price action has not been strong enough to reverse the prevailing bearish momentum.
Additionally, the green lagging span (Chikou Span) is situated below the price and the cloud, reinforcing the bearish outlook.
For ADA price to show signs of recovery, it would need to break above the cloud and exhibit a bullish crossover between the Tenkan-sen and Kijun-sen lines, which could happen soon, as shown by the chart.
ADA Price Prediction: A Potential 24% Upside
The Exponential Moving Averages (EMA) for ADA price reveal a complex and indecisive market scenario. Just one day ago, a death cross, where the short-term EMA crossed below the long-term EMA, formed, indicating potential bearish momentum.
However, the support of nearly $0.90 successfully prevented further declines, and now the EMA lines are converging, reflecting a lack of clear directional strength in the trend.
If the short-term EMA crosses below the long-term EMA once again, the $0.90 support level could come under pressure. A failure to hold this level might lead ADA to test $0.82, signaling further downside risk.
Conversely, if the EMAs shift to favor an uptrend, Cardano price could challenge the $1.03 resistance level. A breakout above this point might propel the price toward $1.18, offering a potential 24% upside from current levels.
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