Cardano (ADA) could be heading for a short-term correction after the TD Sequential indicator flashed a sell signal on the 4-hour chart, hinting that its recent upward momentum may be losing steam.
The signal, widely used by traders to identify trend exhaustion, follows ADA’s modest rebound from last week’s sharp drop.
At the time of writing, Cardano is priced at $0.7410, up 2.17% in the past 24 hours but still down 10.69% over the week. The token holds a market capitalization of $26.25 billion and has recorded $711 million in trading volume in the last 24 hours.
Analyst Ali Martinez, who flagged the sell signal, suggested that ADA may be poised for another pullback if buyers fail to defend current levels. This comes as traders keep a close eye on key support zones that could determine ADA’s next move.
Bullish Scenario
If ADA can maintain its price above the $0.73–$0.74 support range, buying pressure could return, driving the price back toward $0.76 and potentially beyond $0.78. A decisive break above these levels might set the stage for a retest of the $0.80 psychological resistance, which could reignite bullish momentum in the coming weeks.
Bearish Scenario
On the downside, failure to hold the current support could see ADA retracing toward $0.71 and, in a more pronounced sell-off, back to the $0.68–$0.69 region. Such a move would confirm the TD Sequential signal’s bearish outlook, possibly delaying any significant recovery.
For now, ADA’s short-term direction hinges on whether buyers can neutralize the sell signal’s impact, with market sentiment likely to dictate the token’s path in the days ahead.
Source: https://coindoo.com/market/cardano-price-faces-potential-pullback-as-sell-signal-emerges/