The price of Cardano (ADA) has increased strongly by 41.89% in the past seven days, indicating a strong upward trend in the market. The upward trend remains firm, supported by important technical indicators such as ADX and the Ichimoku Cloud, indicating a prolonged positive sentiment.
However, signs of consolidation and narrowing of the gap in the short-term indicators suggest that the rally may face challenges if buying pressure weakens.
The Current Uptrend of ADA Remains Strong
Cardano's DMI chart shows that the ADX has reached 42.7, indicating a strong trend. This indicator has been above 40 since November 7. This high ADX value confirms the resilience of ADA's current uptrend, indicating strong momentum behind the recent price movements.
With a positive directional indicator (D+) at 21.3 and a negative directional indicator (D-) at 11, the upward pressure continues to dominate the downward activity, continuing to support the upward direction.
ADX measures the strength of a trend without considering its direction. A value above 25 indicates a strong trend, while a value below 20 indicates a weak or non-existent trend. With an ADX of 42.7, ADA is clearly in a strong uptrend, reflecting significant market confidence.
The distance between D+ and D- reinforces the dominance of the bullish side, suggesting that if the current conditions persist, the price of ADA may continue its upward journey.
Cardano's Ichimoku Cloud Indicates an Important Signal
The Ichimoku Cloud chart for Cardano shows a general uptrend, with the price maintaining above the cloud (Kumo). The Tenkan-sen (green line) and Kijun-sen (red line) are relatively flat, indicating signs of consolidation after the recent price increase of ADA.
Although the price is still trading above these lines, the narrowing gap between the price and the Tenkan-sen suggests that the short-term momentum is weakening.
The green cloud ahead signals potential support for ADA's uptrend, but the current consolidation phase emphasizes the need for continued buying pressure to maintain this momentum.
If the price falls below the Kijun-sen or approaches the cloud, this could be a sign of a potential shift in sentiment towards a downtrend.
ADA Price Forecast: Will It Reach 1 USD in November?
If Cardano (ADA) maintains its strong uptrend, it may test the resistance level at $0.85. Overcoming this level could pave the way for further gains, with the potential to reach the $1 mark, representing a 20% increase from the current level and the highest price for Cardano since April 2022.
However, as indicated by the Ichimoku Cloud, a potential reversal may be lurking. If the bearish momentum takes over, the ADA price could face strong downward pressure, potentially dropping to $0.51.
If this support fails, the price could further decline to $0.32, representing a deep 59% correction. This underscores the importance of the current support and resistance levels in determining the next direction of ADA.
