Cardano (ADA) Price Path to $1.24 if Support Levels Hold

2025-01-06 09:35:03 Primitive Reading

From beincrypto by Tiago Amaral

Cardano (ADA) price has surged 22% over the past seven days, with its trading volume reaching $2 billion in the last 24 hours. This strong performance has been supported by bullish technical indicators, including a golden cross and a sharp rise in its ADX, reflecting strong trend momentum.

However, ADA’s recent price pullback raises concerns about whether the uptrend can be sustained. As the $1.04 support level becomes critical, ADA’s ability to hold above it will determine whether the bullish momentum continues or a potential reversal takes shape.

ADA ADX Confirms a Strong Uptrend

Between January 1 and January 4, Cardano experienced a significant price increase from $0.85 to $1.06, accompanied by a sharp rise in its ADX from 11.8 to 50.3.

The ADX, or Average Directional Index, measures the strength of a trend on a scale from 0 to 100. Values above 25 indicate a strong trend, while readings below 20 suggest weak or absent trend momentum. ADA ADX at 50.3 highlights the presence of a very strong trend, reinforcing the bullish momentum seen during the price surge.

However, despite this strong ADX reading, ADA’s price has recently seen a slight pullback, raising questions about the sustainability of the uptrend. While the EMA lines remain bullish, suggesting that the overall trend still favors upward movement, the recent price dip could indicate a pause or potential consolidation phase.

For Cardano price to maintain its momentum, buyers must reassert control to push the price higher, or the trend strength signaled by the ADX could weaken if selling pressure increases.

Ichimoku Cloud Indicates Bullish Setup

The Ichimoku Cloud chart for Cardano displays a bullish setup following a recent price breakout above the red cloud. The green cloud ahead, formed by the rising Senkou Span A and Senkou Span B, indicates continued bullish sentiment, suggesting further upward potential if the current trend holds.

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.