Cardano (ADA) price has surged 195.11% in the past 30 days, reflecting significant momentum. However, key indicators suggest that the current uptrend may be losing steam.
ADA could still advance towards the $1.15 resistance and potentially $1.20 if the trend regains momentum. On the other hand, a reversal could lead to a sharp correction, with prices potentially falling to $0.51.
Weakening of the uptrend
Cardano’s DMI chart shows its ADX at 24, a significant drop from 60 a few days ago. The Average Directional Index measures the strength of a trend, regardless of direction. In short, values above 25 indicate a strong trend, while values below 20 suggest weak momentum.
The drop in ADX signals that ADA’s uptrend is losing steam and could enter a consolidation phase. However, a resumption of momentum could fuel further upward movement.
DMI and ADA. Source: TradingView
With D+ at 22.5 and D- at 19, the positive directional indicator still outweighs the negative, suggesting that the uptrend is intact but weakening. The narrow difference between D+ and D- reflects a reduction in bullish dominance, indicating that the market could move toward neutrality or even a downtrend if selling pressure increases.
For ADA to maintain its uptrend, D+ would need to strengthen, pushing ADX back above 25 to confirm renewed momentum.
Ichimoku Cloud Indicates Trend May Change Soon
The Ichimoku Cloud chart for ADA shows a relatively stable uptrend, with the price trading above the cloud (Senkou Span A and B), indicating bullish momentum.
The Tenkan-Sen (blue line) and Kijun-Sen (orange line) remain close together, reflecting consolidation after recent gains. The Cloud itself provides strong support as its ascending structure reinforces the bullish sentiment.
ADA Ichimoku Cloud. Source: TradingView
However, the narrowing gap between the Tenkan-Sen and the Kijun-Sen suggests weakening momentum, potentially leading to a short-term pullback.
If ADA fails to maintain its position above the Kijun-Sen, it could test the upper boundary of the cloud as support. Conversely, a sustained move above current levels would confirm the continuation of the uptrend, with room for further growth.
ADA Price Prediction: A Possible 49% Correction?
Cardano’s EMA lines remain bullish, with short-term lines positioned above the long-term ones, indicating an ongoing uptrend.
However, the narrowing gap between these lines suggests weakening bullish momentum, signaling that the trend may soon lose steam unless buyers step in.
ADA Price Analysis. Source: TradingView
If Cardano price regains momentum from its uptrend, it could test resistance at $1.15, with the potential to rally to $1.20, marking its highest price since March 2022.
However, indicators such as the Ichimoku Cloud and ADX suggest a possible reversal. If the uptrend breaks, ADA price could face a sharp correction, potentially falling to $0.51, representing a 49% drop from current levels.
The article Cardano Shows Signs of Consolidation; Correction in Sight? appeared first on BeInCrypto.
