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CoinDesk1 min read
Cardano (ADA) Slips 10% Weekly, But Key Indicator Flashes Buy Signal: Details
TL;DR
Cardano (ADA) has dropped 10% this week, trading below $0.25. However, a key indicator has signaled a potential buy opportunity, suggesting a possible price rebound.
Key points
- Cardano's price is down 10% weekly
- Current trading price is just below $0.25
- TD Sequential indicator has flashed a buy signal
Cardano’s native token remains well in the red on a weekly scale, reflecting the predominantly bearish mood dominating the crypto market.
Nonetheless, one important metric (which has previously been quite accurate) suggests that the price might be gearing up for a resurgence.
Formation of a Local Bottom?
As of press time, ADA trades just south of $0.25, down 10% from nearly $0.28 seven days ago. According to popular analyst Ali Martinez, the asset could be primed for a rebound, as the TD Sequential indicator has flashed a buy signal today.
He noted that this metric has been remarkably precise at predicting shifts in ADA’s short-term momentum. On May 10, for example, it flashed a sell signal, followed by a 15% correction over the last ten days.
“Now that this cooling-off phase has fully run its course, the same indicator is flashing a buy signal today. This implies that a local bottom is forming,” he argued.
Martinez set the first rebound target at $0.255 if buying pressure builds at ongoing levels. Clearing that level could open the door to test $0.262. At the same time, he warned that this bullish setup would be invalidated if ADA fails to hold the support zone at approximately $0.246.
Earlier this month, the analyst paid special attention to $0.25, reminding that it has served as a major turning point in previous years. In January 2023, ADA bounced off this level and climbed 88% in the weeks that followed. In September that year, the same zone once again acted as a solid support, igniting a massive 243% surge.
For their part, Sssebi claimed that the asset priced at $0.25 is “extremely undervalued,” highlighting the ongoing advancement of Cardano’s ecosystem.
Further Losses on the Way?
It is important to note that Sessebi has been quite inconsistent in their ADA predictions. Earlier this week, the analyst envisioned an additional price drop for the coin if Bitcoin (BTC) does the same.
“Considering that ADA got rejected exactly at the upper trendline of the descending channel, we can assume that it will also retest the bottom of the channel around $0.22,” they stated.
Q&A
What caused Cardano's 10% drop this week?
Cardano's decline is attributed to the overall bearish sentiment in the crypto market.
What is the TD Sequential indicator and how does it relate to ADA?
The TD Sequential indicator is a technical analysis tool that has accurately predicted price shifts in ADA, recently flashing a buy signal.
What price level is Cardano currently trading at?
As of now, Cardano is trading just below $0.25, down from nearly $0.28 a week ago.
