Here is the English translation:
The price of
Cardano (ADA) has increased by 22% in the past seven days, with a Trading Volume of $2 billion in the last 24 hours. This strong performance is supported by positive technical indicators, including a Golden Cross and a significant increase in its ADX, reflecting strong trend momentum.
However, the recent price correction of ADA has raised concerns about whether the uptrend can be sustained. As the $1.04 support level becomes crucial, ADA's ability to hold above this level will determine whether the bullish momentum continues or a potential reversal may occur.
ADA's ADX Confirms Strong Uptrend
From January 1 to January 4, Cardano experienced a significant price increase from $0.85 to $1.06, accompanied by a strong rise in ADX from 11.8 to 50.3. ADX measures the strength of a trend on a scale from 0 to 100. Values above 25 indicate a strong trend, while below 20 suggest weak or no trend momentum. The ADX at 50.3 emphasizes the presence of a very strong trend, reinforcing the bullish momentum seen in the price surge.
ADA ADX. Source:
TradingView
However, despite the strong ADX, the recent price of ADA has seen a slight correction, raising questions about the sustainability of the uptrend. While the EMA lines remain bullish, indicating an overall positive trend, the recent price decline may suggest a potential consolidation or pause.
To maintain Cardano's momentum, buyers must reassert control to push the price higher; otherwise, the trend strength signaled by the ADX may weaken if selling pressure increases.
Ichimoku Cloud Signals Bullish Setup
The Ichimoku Cloud chart for Cardano displays a positive setup as the price recently crossed above the red cloud. The green cloud ahead, formed by Senkou Span A and Senkou Span B, is rising, indicating continued positive sentiment and suggesting potential for further gains if the current trend is sustained.
ADA Ichimoku Cloud. Source:
TradingView
Additionally, the green Tenkan-sen (conversion line) remains above the orange Kijun-sen (base line), confirming the short-term momentum is stronger than the long-term trend.
However, the recent price correction from the highs may signal a consolidation phase or reduced buying pressure. For
ADA to maintain positive momentum, it must hold above the support provided by the cloud and the Kijun-sen. A breakdown below these levels could indicate a potential reversal or further correction.
Cardano's price formed a Golden Cross on January 3, with the short-term EMA crossing above the long-term EMAs - a positive signal often preceding bullish momentum. If this momentum continues, the ADA price could rise to test the resistance level at $1.12. A breakout above this level could open the way for further gains, with targets at $1.18 and $1.24, representing a potential upside of 16.9%.
ADA Price Analysis. Source:
TradingView
However, despite the positive EMA lines, the recent price action suggests ADA may face a correction. If the $1.04 support level fails to hold, ADA could experience a trend reversal, pushing the price down to $0.949. Further downside could occur if ADA tests the $0.85 level.
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