Cardano (ADA) Price Path to $1.24 if Support Levels Hold

From beincrypto by Tiago Amaral

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.