Cardano (ADA) price is currently at a crucial turning point, with mixed signals suggesting both potential gains and risks. The trend appears to be gaining strength, highlighted by the recent uptick in the Average Directional Index (ADX), which measures trend momentum.
At the same time, ADA is struggling near resistance levels, while also relying on key support areas to prevent further declines. The outcome will largely depend on whether bullish momentum can continue to build or if the price succumbs to selling pressure.
ADA Trend Is Getting Stronger
Cardano (ADA) is currently showing signs of a potential downtrend. The long-term moving average lines are positioned above the short-term line, suggesting bearish sentiment.
However, this setup could soon reverse if there is an increase in buying momentum, as the short-term line is moving above. It could potentially cross above the long-term line, which would form a bullish sign.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
The Average Directional Index (ADX) is a technical indicator that measures trend strength. It ranges from 0 to 100, where values below 20 suggest a weak or non-existent trend, while values above 25 indicate a strong trend. ADA’s ADX is currently at 22.43, up significantly from 11 just one day ago.
This rise suggests that ADA was in a consolidation phase over the past few days, with little price movement. Now, with the ADX increasing, ADA could be preparing for a significant price surge, provided the trend strength continues to grow.
Cardano Ichimoku Cloud Shows Caution
According to its Ichimoku Cloud chart, Cardano (ADA) is in a critical area. The price is currently near the cloud, signaling indecision in the market.
Recently, ADA price managed to cross the cloud, suggesting an attempt to break out from its previous consolidation. However, the thin green cloud ahead indicates weak support, meaning significant price movement could easily pierce through.
The Tenkan-sen (red line) and Kijun-sen (blue line) are close, reflecting weak trend momentum. A bullish signal will occur if the Tenkan-sen crosses above the Kijun-sen, with the price staying above the cloud. The Lagging Span (green line) is still within the price action, adding to the uncertainty.
If it moves above the price, this could point to building bullish momentum. ADA is at a pivotal point where a breakout or pullback could soon occur, depending on upcoming market strength.
ADA Price Prediction: An Imminent 19% Price Surge?
Cardano (ADA) is facing clear resistance levels at $0.37 and $0.416. A break above these levels could open the door for further upside, with a potential target of $0.43.
Reaching this level would mark ADA’s highest price since July, representing a possible 19% surge. The market would need strong bullish momentum to overcome these barriers and push towards this significant level.
Read more: Who Is Charles Hoskinson, the Founder of Cardano?
On the downside, ADA has support at $0.343 and $0.33, which could help stabilize the price if upward momentum fails. If these support levels do not hold, ADA could potentially drop to $0.30.
This would imply a 16% price decline, putting the token under additional pressure. The next few moves will be critical in determining whether ADA breaks out or faces a further pullback.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Tiago Amaral
https://beincrypto.com/cardano-could-surge-if-this-happens/
2024-10-21 20:30:00
