Cardano (ADA) price has surged 41.89% in the past seven days, signaling strong bullish momentum in the market. The trend remains strong, supported by key technical indicators like the ADX and Ichimoku Cloud, which point to sustained positive sentiment.
However, signs of consolidation and narrowing gaps in short-term indicators suggest the rally could face challenges if buying pressure weakens.
Uptrend remains strong
Cardano’s DMI chart shows an ADX of 42.7, signaling a strong trend. The indicator has remained above 40 since November 7. This high ADX value confirms the robustness of ADA’s ongoing trend, signaling solid momentum behind the recent price movements.
With the Positive Directional Index (D+) at 21.3 and the Negative Directional Index (D-) at 11, bullish pressure continues to outweigh bearish activity, further supporting the upward trajectory.
THERE IS DMI. Source: TradingView
ADX measures the strength of a trend without considering its direction. Values above 25 indicate a strong trend, while those below 20 suggest a weak or non-existent trend. With an ADX of 42.7, ADA is clearly in a strong uptrend, showing significant market confidence.
The difference between D+ and D- reinforces bullish dominance, suggesting that ADA price could sustain its upward movement if current conditions persist.
Ichimoku Cloud Shows an Important Signal
The Ichimoku Cloud chart indicates a generally bullish trend as the price remains above the cloud (Kumo). The Tenkan-sen (blue line) and Kijun-sen (red line) are relatively flat, showing signs of consolidation after ADA’s recent rally.
Although the price is still trading above these lines, the narrowing gap between the price and the Tenkan-sen suggests weakening near-term momentum.
ADA Ichimoku Cloud. Source: TradingView
The green cloud ahead signals potential support for ADA’s uptrend, but the current consolidation phase highlights the need for sustained buying pressure to maintain this momentum.
If the price breaks below the Kijun-sen or approaches the cloud, it could signal a possible shift to bearish sentiment.
Price Prediction: Could ADA Hit $1 in November?
If Cardano maintains its strong uptrend, it could test resistance at $0.85. Breaking this level could pave the way for further gains, with the potential to reach the $1 level, marking a 20% increase from current levels and the highest price for ADA since April 2022.
ADA Price Analysis. Source: TradingView
However, as indicated by the Ichimoku Cloud, a possible reversal may be on the horizon. If the bearish momentum prevails, ADA price could face significant downward pressure, potentially dropping to $0.51.
If this support fails, the price could drop further to $0.32, representing a sharp 59% correction. This highlights the importance of current support and resistance levels in determining ADA’s next direction.
The article Cardano (ADA) Price Jumps 42%, Targets $1 appeared first on BeInCrypto.
