Cardano (ADA) price has surged 20% in the last seven days, reclaiming levels above $1 and solidifying its position as the 9th largest crypto by market cap. Despite this strong performance, ADA’s trend strength appears to be weakening, as indicated by a declining ADX.
The Ichimoku Cloud chart still reflects a bullish setup, but narrowing cloud patterns suggest potential hesitation in momentum. Whether ADA can maintain its upward trajectory or face a correction will depend on its ability to break key resistance levels or hold critical support zones.
Cardano’s ADX Reflects a Decline in Trend Strength
Cardano ADX (Average Directional Index) is currently at 14.2, a sharp drop from 24.8 three days ago when its recent surge and uptrend began to lose momentum. This decline follows a rapid price increase from $0.89 to $1.13 over four days, highlighting a shift from strong upward momentum to a more uncertain phase.
The ADX measures the strength of a trend, with values above 25 indicating a strong trend and readings below 20 suggesting a weak or undefined trend.
With an ADX of 14.2, ADA’s trend strength appears to be waning, even as ADA price remains in an uptrend but not as strong as before. This low ADX indicates that the market lacks strong directional momentum, suggesting potential consolidation or indecision among traders.
If the ADX remains low, Cardano price may struggle to sustain significant upward moves without renewed buying pressure. Still, the uptrend could resume if momentum builds and the ADX rises again.
Ichimoku Cloud Shows a Bullish Picture
The Cardano Ichimoku Cloud chart shows the price currently above the cloud, indicating a bullish trend overall. The cloud itself is green, with Senkou Span A above Senkou Span B, reinforcing the bullish outlook for the near term.
However, the cloud’s narrowing suggests a weakening trend, signaling the possibility of reduced momentum in the future.
The Tenkan-sen (blue line) remains above the Kijun-sen (red line), highlighting positive short-term momentum. However, ADA price could be losing its uptrend, and any crossover between these lines could indicate a potential shift in sentiment.
As long as the price remains above the cloud, the bullish trend is intact, but a move below could suggest the emergence of bearish pressure.
ADA Price Prediction: Can Cardano Fall Below $1 In January?
If Cardano price current uptrend regains strength, it could approach and test the resistance level at $1.119. Breaking this resistance would signal a continuation of bullish momentum, potentially paving the way for further upward movement toward $1.151.
On the other hand, if the trend reverses, ADA price could test its support at $1.03. Losing this critical level could trigger a stronger correction, with the price potentially falling as low as $0.87.
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