Cardano (ADA) Shows Signs of Potential Price Surge as Key Indicator Turns Bullish

Recent analysis from cryptocurrency analyst Ali (@ali_charts) suggests that Cardano (ADA) might be preparing for a significant price move upward, following a new bullish signal from a key technical indicator.

Cryptocurrency analyst Ali (ali_charts) has observed a potential bullish setup for Cardano (ADA) following a key technical indicator signaling a possible buying opportunity.

Ali's analysis highlights the TD Sequential indicator, which is used to identify potential market reversals. On ADA's daily chart, the indicator has just flashed a "buy" signal, suggesting a potential upcoming price rebound for the digital asset.

A closer look at the current market structure reveals that Cardano has faced significant downward pressure recently, with the latest trading session showing a substantial red candle pushing prices toward the $0.876 level. However, the presence of a long lower wick on this candle indicates that sellers initially drove the session, but buyers intervened with strong buying pressure to push prices back up from the lows.

This buying pressure at lower levels coincides with the TD Sequential's "buy" signal, which is marked by a green "9" candle on the chart. This particular signal typically appears after an extended period of downward movement, suggesting that the selling pressure may be nearing exhaustion.

Ali's observation of this technical pattern comes at a critical point, as Cardano has reached a significant support zone between $0.85 and $0.88. This price range has historically attracted buyer interest, which, when combined with the TD Sequential signal, could bolster the argument for a potential price reversal.

It's important to note that while Ali's analysis focuses on the TD Sequential indicator, the current market structure adds further context to the bullish thesis. The convergence of technical signals, including the strong buyer response at lower levels and the presence of a key support zone, suggests that Cardano might indeed be setting the stage for an upward move.

However, traders should consider additional confirmation from other technical indicators and the broader market conditions before making any investment decisions. Given the inherent volatility of the cryptocurrency market, while technical signals can provide valuable insights, they should be part of a comprehensive analysis approach.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.Get all our future calls by joining our FREE Telegram group.

We recommend eToro