Cardano (ADA) Price Could Surge 19% If This Happens

Cardano (ADA) price is currently at a crucial turning point, with mixed signals suggesting both potential gains and risks. The trend appears to be gaining strength, highlighted by the recent uptick in the Average Directional Index (ADX), which measures trend momentum.

At the same time, ADA is struggling near resistance levels, while also relying on key support areas to prevent further declines. The outcome will largely depend on whether bullish momentum can continue to build or if the price succumbs to selling pressure.

ADA Trend Is Getting Stronger

Cardano (ADA) is currently showing signs of a potential downtrend. The long-term moving average lines are positioned above the short-term line, suggesting bearish sentiment.

However, this setup could soon reverse if there is an increase in buying momentum, as the short-term line is moving above. It could potentially cross above the long-term line, which would form a bullish sign.

ADA ADX. Source: TradingView

The Average Directional Index (ADX) is a technical indicator that measures trend strength. It ranges from 0 to 100, where values below 20 suggest a weak or non-existent trend, while values above 25 indicate a strong trend. ADA’s ADX is currently at 22.43, up significantly from 11 just one day ago.

This rise suggests that ADA was in a consolidation phase over the past few days, with little price movement. Now, with the ADX increasing, ADA could be preparing for a significant price surge, provided the trend strength continues to grow.