Cardano (ADA) price has risen by 4% in the last 24 hours, attempting to reclaim the $1 price level, despite being down 12% over the past week. The recent rebound comes as ADA shows signs of stabilizing following a period of intense selling pressure.

ADA’s ADX highlights that the strength of its previous downtrend has been weakening, providing room for a potential shift in momentum. However, its Ichimoku Cloud and EMA indicators still signal uncertainty.

Cardano Downtrend Could Be Losing Its Strength

Cardano Average Directional Index (ADX) is currently at 33.7, showing a significant decrease from its recent peak of 53.2 just three days ago. ADX is a technical indicator used to measure the strength of a trend, whether bullish or bearish, on a scale from 0 to 100.

Values above 25 typically indicate a strong trend, while those below 20 suggest weak or absent momentum. The drop in ADA ADX suggests that the strength of its previous downtrend has waned, aligning with its efforts to recover an uptrend after a period of bearish activity between January 7 and January 9.

At its current level, the ADX reflects a moderate trend, signaling that while the downtrend is losing intensity, the uptrend hasn’t yet fully established itself. If ADA manages to sustain buying momentum, the decreasing ADX could indicate an opportunity for a price rebound as selling pressure weakens.

However, without strong directional movement in the market, ADA price may remain in a consolidation phase, awaiting further catalysts to define its next significant move.

Ichimoku Cloud Still Shows a Bearish Setup

The Ichimoku Cloud chart for Go to Source to See Full Article
Author: Tiago Amaral