Cardano (ADA) has gained renewed attention among cryptocurrency investors following a TD Sequential buy signal that appeared on its three-week price chart. This proposes that the extended downtrend in the coin may be approaching exhaustion.
The signal was emphasized by cryptocurrency analyst Ali Martinez, who shared the chart analysis on social media, marking that the last time a similar setup occurred, it preceded a 307.54% bullish rally in the coin.
The TD Sequential indicator, developed by technical analyst Tom DeMark, is largely utilised by investors to identify potential points where a trend is losing rally and may reverse. The system counts a series of price candles to understand trend exhaustion.
Also Read: Cardano (ADA) Trades Near $0.26 as Market Activity Slows
Historical Context of the Previous Signal
According to Martinez’s analysis, the prior TD Sequential buy signal on the same long-term timeframe triggered a sturdy rally in ADA. The move allegedly resulted in a 307.54% price increase, making the current signal specifically significant for traders and analysts observing the altcoin’s potential recovery.
TD Sequential signals tend to gain attention when they appear on higher-timeframe charts, such as weekly or multi-week intervals. Investors often consider these signals more dependable because they indicate larger market sentiment and longer-term trend exhaustion rather than short-term fluctuations.
According to the data given by CoinMarketCap, at the time of writing, the coin is trading at $0.2789 with a 6.25% increase in rate. The daily trading volume of the coin is around $643.75 million, and the market cap of the token has exceeded $9.9 billion.
Cardano Market Conditions and Key Levels
ADA’s price chart reveals the upward momentum, and it could climb toward the resistance (yellow) at around $0.276. Assuming the bullish pressure strengthens, the golden cross might emerge and send the price up to test the $0.280 range.
If a reversal occurs, the bears might push down the asset’s price to the support (blue) at $0.264. In case the downside correction gains more traction, the death cross could form, and likely drive the asset’s price to a low of $0.260 or even lower.
The relative strength index (RSI) shows Cardano being over-bought as the RSI line is above the 50 median. The moving average convergence divergence (MACD) indicator shows the coin experiencing a bullish momentum as the MACD line (blue) is above the signal line (orange).
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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