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Cardano (ADA) price has increased 22% in the past seven days, with trading volume reaching $2 billion in the past 24 hours. This strong performance is supported by bullish technical indicators, including a golden cross and a sharp increase in ADX, reflecting strong trend momentum.
However, ADA’s recent price decline raises concerns about its ability to maintain the uptrend. As the $1.04 support level becomes critical, ADA’s ability to hold above this level will determine whether the upward momentum continues or can reverse.
ADA’s ADX Confirms Strong Uptrend
From January 1 to January 4, Cardano saw a significant increase in price from $0.85 to $1.06, accompanied by a sharp increase in ADX from 11.8 to 50.3.
ADX, or Average Directional Index, evaluates the strength of a trend on a scale of 0 to 100. Values above 25 indicate a strong trend, while levels below 20 indicate a weak or absent trend. face. ADA’s ADX at 50.3 shows a very strong trend, reinforcing the bullish momentum in this outbreak.
However, despite the strong ADX, ADA price has recently seen a slight pullback, raising questions about its ability to maintain the uptrend. While the EMAs remain positive, suggesting that the overall trend remains favorable to growth, the recent price correction could indicate a period of pause or consolidation.
For Cardano price to maintain upward momentum, buyers need to reassert control to push prices higher, otherwise the trend strength indicated by ADX could weaken as selling pressure increases.
Ichimoku Cloud Points to a Bullish Setup
Cardano’s Ichimoku Cloud chart shows a bullish setup after the recent price break above the red cloud. The green cloud ahead, formed by the rise of Senkou Span A and Senkou Span B, shows that bullish sentiment continues, suggesting upside potential if the current trend holds.
Additionally, the blue Tenkan-sen (conversion line) remains above the orange Kijun-sen (base line), confirming the short-term momentum is outperforming the long-term trend.
However, a pullback from recent highs could signal a period of consolidation or reduced buying pressure. For ADA to maintain its upward momentum, it is necessary to keep the price above the support provided by the cloud and Kijun-sen. A break below these levels could indicate a reversal or deeper correction.
ADA Price Forecast: Support at $1.04 Is the Core
Cardano price formed a golden cross on January 3, with the short-term EMA crossing above the long-term ones — a bullish signal that typically predicts upward momentum. If this momentum persists, ADA price could rise to test resistance at $1.12.
A break above this level could pave the way for higher profits, with targets at $1.18 and $1.24 representing 16.9% upside potential.
However, although the EMAs remain bullish, recent price action suggests that ADA price could be facing a pullback. If the $1.04 support fails to hold, ADA could experience a trend reversal, pushing the price towards $0.949. A further decline is possible if ADA retests the $0.85 level.
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