- The TD Sequential indicator for the ADA price action has flashed a buy signal.
- Ali Martinez has highlighted that the ADA price chart is “showing signs of a potential rebound.”
- RSI indicator reads 27.88 which means that ADA is currently being oversold in the market.
Cardano (ADA) is gearing up for significant gains, according to crypto analyst Ali Martinez. Martinez noted that the technical indicators for the native token of the Cardano blockchain have turned bullish despite a 25% price crash in the past 30 days.
Martinez noted that the daily candlestick chart for Cardano (ADA) against Tether (USDT) on Binance is “showing signs of a potential rebound.” The analyst stated that the “TD Sequential indicator” flashes a buy signal for the altcoin as investors are presented with strong entry points.
TD Sequential Indicator
The TD Sequential indicator is used to identify potential trend reversals. The indicator generates a buy signal when the bearish countdown reaches “9”, suggesting exhaustion of the downtrend. The chart shows a red “9” on the latest candle, indicating that a possible reversal could be near.
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However, the chart also reveals that ADA’s price has been trending downward, with multiple bearish candles. The long lower wick on some recent candles suggests buying pressure at lower levels. If there is sufficient demand at the current support level, a rebound could occur.
ADA Price Analysis
At the time of writing, ADA is trading at $0.6941, down 1.39% over the past day despite a 45% surge in the cryptocurrency’s trading volume, CoinMarketCap data shows.
On the other hand, the Relative Strength Index (RSI) for the altcoin reads a value of 27.88 which confirms that the ADA token is oversold. This is a good entry position as such levels are often followed by sharp price increases.
Related: Staked Cardano ETP Goes Live on Nasdaq Helsinki via Virtune
The MACD indicator remains bearish for the altcoin but the intensity appears to be on the decline. The MACD histogram is red but the strength of the bars is decreasing while the MACD line (blue) and the signal line (red) have started to come closer.
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