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- As market analysts have observed, Cardano has formed a bull flag pattern on the daily chart.
- ADA rebound is imminent, but a mild selloff still shows headwinds ahead.
ADA, the native digital asset of the Cardano network, is still experiencing a downturn alongside the broader crypto market. However, the TD Sequential indicator has flashed a buy signal for Cardano (ADA), indicating a possible price reversal.
Hope for Cardano Investors and Traders
According to MarketCap data, at the time of writing, ADA price was trading at $0.7, down 0.16% in the last 24 hours. In addition, ADA’s price has also dropped by 22% over the past 14 days and 23.3% over the previous 30-day period.
Amid this bearish sentiment, on-chain market analyst Ali Martinez recently identified a possible shift in ADA’s price movement. In an X post, Martinez pointed out that the altcoin TD Sequential indicator showed a buy signal on the daily chart. This suggests a potential price rebound is on the horizon for ADA.
#Cardano $ADA is showing signs of a potential rebound as the TD Sequential indicator flashes a buy signal on the daily chart. pic.twitter.com/jeC6XmULMT
— Ali (@ali_charts) February 9, 2025
The analyst included a chart in his post, which showed ADA formed a pattern of lower highs and lower lows. This is mainly due to declines it has experienced since late January. However, with the TD Sequential buy signal indicating trend exhaustion, the price has reached a key support zone.
This TD Sequential indicator is often used to identify points of potential reversals. This indicator suggests that ADA could see a bounce from its current level.
Besides Martinez, a self-proclaimed market technician, Jonathan Carter also emphasized ADA has formed a bull flag pattern on the daily chart. Carter claimed that the ADA could test its support level once more before climbing higher. He added that ADA’s current price offers limited upside potential, with better entry opportunities near the $0.6 support level.
Carter projected ADA reaching prices of $0.845, $1.000, $1.150, and $1.325 if a bounce eventually occurs.
As we covered in our latest report, Martinez compared ADA’s current price structure to a breakout in 2021 that led to an outstanding surge. In his analysis, Martinez explained ADA in a consolidation phase. This means the coin fluctuated within a defined range before its previous breakout. The study suggested that ADA could rally to as high as $15.
As CNF discussed earlier, other analysts think ADA could become an attractive option in the current market cycle. Notably, this forecast hinges on its sustainable approach and technological advancements.
Retail and Whale Commitment
It is important to note that retail participation in ADA has increased despite the short-term price drop. Within the last 24 hours, the trading volume has increased by 44.7% to $776.6 million.
Meanwhile, IntoTheBlock data showed investor participation has increased by 1.60% in the last 30 days. Also, retail traders have expanded their holdings by 0.72%, showing growing interest from more minor market participants.
However, ADA whale holdings decreased by 1.68% within the same period, indicating some profit-taking levels. Still, large holders have not entirely exited their positions as the selling activity is still under control.
