Cardano (ADA) Heads Towards $1.24: ADA Price Analysis According To Experts

Bittime - Cardano (ADA) price showed significant gains in the last seven days, surging by 22% with trading volume reaching $2 billion in the last 24 hours. This increase was driven by bullish technical indicators, including patterns golden cross and a sharp spike in ADX, reflecting strong trend momentum. However, with the recent price decline, there are concerns regarding the continuation of this upward trend.

ADX Indicator Confirms Strong Uptrend

From January 1 to January 4, 2025, ADA price saw a significant jump from $0.85 to $1.06, followed by a sharp rise in ADX from 11.8 to 50.3. ADX, or Average Directional Index, measures the strength of a trend on a scale of 0 to 100. 

Values ​​above 25 indicate a strong trend, while values ​​below 20 indicate weak or no trend momentum. With ADX reaching 50.3, this shows that this uptrend is very strong and supports ADA price increases.

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However, although ADX is showing significant trend strength, ADA price has recently experienced a small decline, which raises the question of whether this upward trend can last. Although the EMA (Exponential Moving Average) line remains bullish, this price drop could indicate a consolidation phase or a possible trend reversal.

Ichimoku Cloud Shows Bullish Sentiment

The Ichimoku Cloud chart for Cardano also shows a bullish setup after the price managed to break through the red cloud. The green cloud formed by Senkou Span A and Senkou Span B which continues to rise indicates continued bullish sentiment. This implies the potential for further upside if the current trend can be maintained.

Additionally, the blue Tenkan-sen line (conversion line) is still above the orange Kijun-sen line (baseline), confirming stronger short-term momentum compared to the long-term trend. 

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Nonetheless, the recent price decline could indicate a consolidation phase or decreasing buying pressure. For ADA's bullish momentum to be maintained, the price must stay above the support levels provided by the cloud and Kijun-sen. If the price falls below this level, a trend reversal or further retracement could occur.

ADA Price Prediction: Support at $1.04 is Critical

On January 3, 2025, ADA formed golden cross with the short-term EMA line crossing the long-term EMA line, a bullish signal that often precedes further price increases. If this momentum continues, ADA price could test the resistance at $1.12. If it breaks out, the next price targets are $1.18 and $1.24, indicating upside potential of 16.9%.

However, although the EMA line remains bullish, the latest price action suggests that ADA may face a downturn. If the support level at $1.04 fails to hold, ADA could experience a trend reversal leading to prices around $0.949. Further decline is possible if the price tests the $0.85 level.

Conclusion

Cardano (ADA) is on a positive path towards a potential price of $1.24, provided the existing support levels hold. Strong technical indicators, such as the ADX and Ichimoku Cloud, suggest good bullish momentum, but there is a risk of consolidation or trend reversal if the key support at $1.04 is not maintained. If you are interested in investing, make sure to always monitor price movements and consider your steps carefully.

FAQs about Cardano (ADA)

What is driving the ADA price increase?

ADA price increases are driven by technical indicators such as golden cross, a spike in ADX, and bullish sentiment on the Ichimoku Cloud, indicating further upside potential.

Why is the $1.04 support level important?

Support at $1.04 is important for the uptrend to continue. If the price falls below this level, a trend reversal could occur, but if it persists, ADA price could head towards a higher target.

Can ADA reach $1.24?

If the bullish momentum continues and ADA breaks the $1.12 resistance, ADA price could potentially reach $1.24 with an upside of around 16.9%.

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Reference

Beincrypto, Cardano (ADA) Price Path to $1.24 if Support Levels Hold, accessed January 5, 2025.

Author: MF