Cardano Shows Bullish Technical Signals During Support Test – TD Sequential Buy Signal Appears

Cardano The price of (ADA) appears to indicate a potential reversal. Traders also noticed a bullish RSI and a TD Sequential Buy Signal on the daily chart. Ali Martinez is a trade technologist who argues that such patterns can be caused by trends fatigue, and could indicate a reversal like the one at $0.52 mid-November in 2025. Cardano’s 37% drop from its peak highs indicates that the asset may be approaching a momentum shift.

Techni-cal Indicators Point to Potential Reversal

Cardano technical conditions are improving. Relative Strength Index currently hovers around 33-35 and is barely above the oversold area, which shows that momentum was weakened. However, it does not indicate that there has been any capitulation. The MACD histogram Early signs of bullish acceleration divergence, despite the trend direction.

Tom DeMark created the TD Sequential Indicator to find trend exhaustion with a few closings in a row to signal a downward trend reversal. The characteristic was introduced “9” reading on Cardano’s chart is an indication that momentum may be slipping to the downside. Analysts think that, after a long decline, more buyers are entering these lower levels. This is shown by the longer lower wicks of recent candles, which indicate support for current price movement.

Critical Support Remains Strong

Cardano’s support level at $0.52 has proven to be very strong in the last year. Chart analysis shows that this support level has been the basis for many previous rallies, up to and including early 2025. This zone is a technical and psychological underpinning of this asset. Each time ADA tested this level buyers came out to defend the price, creating a pattern which gives an impression that ADA is accumulating rather than distributing.

Analysts will set their sights on $0.58 if this level of support is reached. This would represent a 12 percent increase over the current price levels. The $0.60 resistance may be reclaimed successfully, which could cause further movements towards $0.68 and even $0.71. It is important to keep an eye on the range between $0.65 and $0.70, where a move above this level would change the technical picture from being bearish to neutral to even bullish.

Whale accumulation signals institutional confidence

At the same, institutions have quietly been building up their holdings. On-chain sentiment data shows whale and shark Cardano Wallets that had 100,000 to 100,000,000 ADA amassed $348 million tokens, or $204,000,000 in just four days. This was at the beginning of November. It represents almost 1% the Cardon total and is a substantial increase over the net sales observed in October and September.

When prices fell to between $0.60 and $0.60, large holders of 1,000,000 ADA or more showed a particularly strong buying activity. This has historically been associated with short-term rebounds. Whale behavior runs counter to market conditions, which suggests that sophisticated investors see current prices at $0.60 or less as a good entry point.

The conclusion of the article is:

Analysts will be watching for TD Sequential buying indicator, RSI oversold areas, MACD possible crossover bullish, and the price rising above crucial support. Many investors say that these factors create a good risk/reward scenario for those who are patient. RSI should break above 45 to confirm momentum and ADA’s reclaiming of the $0.58-0.60 zone resistance.

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Source: blockchainreporter.net