How High Will ADA Climb?

The TD Sequential indicator has flashed a buy signal for Cardano (ADA), suggesting a potential price reversal.

In recent weeks, Cardano experienced a downturn alongside the broader crypto market. According to the latest data, ADA traded at $0.6934, marking a 1.7% decline in the last 24 hours.

Over the past 14 days, the asset has dropped by 22%, while the 30-day decline stands at 25%. Despite these losses, ADA remains up 29.3% on a yearly scale, indicating sustained long-term growth.

Signals For Potential Rebound for Cardano

Amid the short-term decline, market analyst Ali Martinez has identified a possible shift in Cardano’s price movement. According to the observation, the TD Sequential Indicator has triggered a buy signal on the latest daily candlestick, suggesting a potential reversal.

The chart illustrated that Cardano has been in a downtrend since late January, forming a pattern of lower highs and lower lows. However, the price has now reached a key support zone, with the TD Sequential buy signal indicating trend exhaustion.

This tool, often used to identify points of potential reversals, suggests that ADA could see a bounce from its current level.

Meanwhile, another technical observation points to the formation of a bull flag pattern on the daily chart. A self-proclaimed market technician, Jonathan Carter, notes that ADA could test its support level once more before moving higher.

According to the analyst, the current price presents limited upside potential, with more favorable entry points expected around the $0.60 level. If a bounce occurs, price targets are projected at $0.845, $1.000, $1.150, and $1.325.

Historical Patterns Confirm a Possible Breakout

Previously, Martinez drew parallels between the current price structure and ADA’s breakout in 2021 that led to a multi-thousand percent surge.

His accompanying chart visualized a consolidation phase, showing ADA fluctuating within a defined range before its previous breakout. The analysis suggested the possibility of ADA rallying to as high as $15.

Whale and Retail Participation Trends

Meanwhile, on-chain data from IntoTheBlock provides insights into investor activity surrounding ADA, possibly influencing its price. Over the past 30 days, whale holdings have decreased by 1.68%, indicating some level of profit-taking.

However, the selling activity has not been aggressive, suggesting that large holders are not completely exiting their positions.

Meanwhile, investor participation has increased by 1.60% in the same period. Retail traders have also expanded their holdings by 0.72%, showing growing interest from smaller market participants.