Cardano (ADA) price has surged 20% in the last seven days, reclaiming levels above $1 and solidifying its position as the 9th largest crypto by market cap. Despite this strong performance, ADA’s trend strength appears to be weakening, as indicated by a declining ADX.

The Ichimoku Cloud chart still reflects a bullish setup, but narrowing cloud patterns suggest potential hesitation in momentum. Whether ADA can maintain its upward trajectory or face a correction will depend on its ability to break key resistance levels or hold critical support zones.

Cardano’s ADX Reflects a Decline in Trend Strength

Cardano ADX (Average Directional Index) is currently at 14.2, a sharp drop from 24.8 three days ago when its recent surge and uptrend began to lose momentum. This decline follows a rapid price increase from $0.89 to $1.13 over four days, highlighting a shift from strong upward momentum to a more uncertain phase.

The ADX measures the strength of a trend, with values above 25 indicating a strong trend and readings below 20 suggesting a weak or undefined trend.

With an ADX of 14.2, ADA’s trend strength appears to be waning, even as ADA price remains in an uptrend but not as strong as before. This low ADX indicates that the market lacks strong directional momentum, suggesting potential consolidation or indecision among traders.

If the ADX remains low, Cardano price may struggle to sustain significant upward moves without renewed buying pressure. Still, the uptrend could resume if momentum builds and the ADX rises again.

Ichimoku Cloud Shows a Bullish Picture

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Author: Tiago Amaral