Cardano (ADA) Price Path to $1.24 if Support Levels Hold
Cardano’s bullish rally is supported by strong technicals, but a pullback near $1.04 raises questions about trend sustainability. Key levels are in focus.
Cardano (ADA) price has surged 22% over the past seven days, with its trading volume reaching $2 billion in the last 24 hours. This strong performance has been supported by bullish technical indicators, including a golden cross and a sharp rise in its ADX, reflecting strong trend momentum.
However, ADA’s recent price pullback raises concerns about whether the uptrend can be sustained. As the $1.04 support level becomes critical, ADA’s ability to hold above it will determine whether the bullish momentum continues or a potential reversal takes shape.
ADA ADX Confirms a Strong Uptrend
Between January 1 and January 4, Cardano experienced a significant price increase from $0.85 to $1.06, accompanied by a sharp rise in its ADX from 11.8 to 50.3.
The ADX, or Average Directional Index, measures the strength of a trend on a scale from 0 to 100. Values above 25 indicate a strong trend, while readings below 20 suggest weak or absent trend momentum. ADA ADX at 50.3 highlights the presence of a very strong trend, reinforcing the bullish momentum seen during the price surge.
ADA ADX. Source:
TradingView
However, despite this strong ADX reading, ADA’s price has recently seen a slight pullback, raising questions about the sustainability of the uptrend. While the EMA lines remain bullish, suggesting that the overall trend still favors upward movement, the recent price dip could indicate a pause or potential consolidation phase.
For Cardano price to maintain its momentum, buyers must reassert control to push the price higher, or the trend strength signaled by the ADX could weaken if selling pressure increases.
Ichimoku Cloud Indicates Bullish Setup
The Ichimoku Cloud chart for Cardano displays a bullish setup following a recent price breakout above the red cloud. The green cloud ahead, formed by the rising Senkou Span A and Senkou Span B, indicates continued bullish sentiment, suggesting further upward potential if the current trend holds.
ADA Ichimoku Cloud. Source:
TradingView
Additionally, the blue Tenkan-sen (conversion line) remains above the orange Kijun-sen (baseline), confirming short-term momentum outpacing the longer-term trend.
However, the recent pullback in price from its highs may signal a period of consolidation or reduced buying pressure. For ADA to maintain its bullish momentum, it must hold above the support provided by the cloud and the Kijun-sen. A break below these levels could indicate a potential reversal or further retracement.1
ADA Price Prediction: The Support at $1.04 Is Fundamental
Cardano price formed a golden cross on January 3, with its short-term EMA line crossing above the longer-term lines — a bullish signal that often precedes upward momentum. If this momentum persists, ADA price could rise to test the resistance at $1.12.
A breakout above this level could pave the way for further gains, with targets at $1.18 and $1.24, representing a potential 16.9% growth.
ADA Price Analysis. Source:
TradingView
However, while the EMA lines remain bullish, recent price action suggests ADA price could face a pullback. If the $1.04 support level fails to hold, ADA may experience a trend reversal, pushing the price toward $0.949. A further decline could be seen if ADA tested the $0.85 level.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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