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Cardano (ADA) price has increased 20% in the past seven days, surpassing $1 USD and solidifying its position as the 9th largest cryptocurrency by market capitalization. Despite its strong performance, ADA’s trend appears to be weakening, as evidenced by the declining ADX index.
The Ichimoku Cloud chart still shows a bullish setup, but the narrow cloud patterns suggest potential hesitation in the momentum. Whether ADA can maintain its upward momentum or face a correction will depend on its ability to break key resistance levels or hold necessary support zones.
Cardano’s ADX Reflects a Decline in Trend Strength
. This drop followed a rapid rally from $0.89 to $1.13 over four days, highlighting the transition from strong bullish momentum to a period of greater uncertainty.
ADX measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 suggesting a weak or unclear trend.
With ADX at 14.2, ADA’s trend strength appears to be weakening, although ADA price is still in an uptrend but not as strong as before. This low ADX indicates that the market lacks strength, hinting at consolidation or indecision among traders.
If ADX remains low, Cardano price may have difficulty sustaining significant upward movements without renewed buying pressure. However, the uptrend could continue if momentum builds and ADX rises again.
Ichimoku Chart Shows Bullish Price Pattern
Cardano’s Ichimoku Cloud chart shows that the price is currently above the cloud, indicating an overall bullish trend. This cloud is green, with Senkou Span A above Senkou Span B, reinforcing the near-term bullish view.
However, the narrowing of the cloud suggests a weakening trend, pointing to the possibility of a decline in momentum going forward.
The Tenkan-sen line (blue line) remains above the Kijun-sen line (red line), emphasizing the short-term bullish momentum. However, ADA price could lose momentum and any crossover between the two lines could indicate a potential change in market sentiment.
As long as the price remains above the cloud, the uptrend remains intact, but moving below the cloud can suggest bearish pressure is present.
ADA Price Prediction: Could Cardano Fall Below 1 USD In January?
If the current Cardano price uptrend regains strength, it could approach and test the resistance at $1,119. A break above this resistance would signal a continuation of the bullish momentum, potentially paving the way for a further upward move towards $1,151.
On the other hand, if the trend reverses, ADA price could test the support at $1.03. Loss of this key level could trigger a sharper correction, with the price likely to sink deeper to $0.87.
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