The price of Cardano (ADA) has surged by 195.11% over the past 30 days. This reflects a strong bullish momentum. However, key indicators such as ADX and EMA lines suggest that the current uptrend may weaken.
If the uptrend recovers, ADA can push towards resistance levels of $1.15 and potentially $1.20. Conversely, if the trend reverses, the price can plummet sharply to $0.51.
ADA Uptrend Not Strongly Bullish
The Cardano DMI chart shows that the ADX has dropped significantly from 60 to 24 in the past few days. The ADX, or Average Directional Index, measures the strength of a trend regardless of direction. Readings above 25 indicate a strong trend, while below 20 suggest weak momentum.
The decline in ADX indicates that the ADA uptrend is weakening. Without an increase in bullish momentum, the market may enter a correction phase.
With D+ at 22.5 and D- at 19, the positive directional indicator (D+) is still higher than the negative indicator (D-). This suggests that the uptrend is being maintained, but it is weakening. The narrow gap between D+ and D- implies that the market can shift to neutral or bearish if selling pressure increases.
For ADA to sustain the uptrend, D+ needs to strengthen, and the ADX needs to rise back above 25 to confirm a new momentum.
Ichimoku Cloud Suggests Trend May Shift Soon
The Ichimoku Cloud chart for ADA shows a relatively stable uptrend. The price is trading above the cloud (Senkou Span A and B), indicating bullish momentum.
The Tenkan-sen (blue line) and Kijun-sen (orange line) are still close, reflecting the recent upswing and correction. The cloud itself provides strong support, and the bullish structure reinforces the bullish sentiment.
However, the narrowing gap between the Tenkan-sen and Kijun-sen suggests that momentum is weakening, which could lead to a short-term pullback.
If ADA fails to maintain its position above the Kijun-sen, it may test the upper boundary of the cloud as support. Conversely, if it continues to consistently surpass the current levels, the uptrend will likely continue, leaving room for further growth.
ADA Price Prediction: 49% Correction Possible
The Cardano exponential moving averages (EMAs) still show a bullish bias, with the short-term line positioned above the long-term line, indicating a sustained uptrend.
However, the narrowing gap between these lines suggests that the bullish momentum is weakening, and the trend may soon weaken if buyers do not intervene.
If the Cardano price regains the strength of the uptrend, it can test the $1.15 resistance and potentially reach $1.20, which would be the highest price since March 2022.
However, indicators such as the Ichimoku Cloud and ADX suggest the possibility of a trend reversal. If the uptrend collapses, the ADA price can undergo a sharp correction and fall as low as $0.51, a 49% drop from the current level.
