Cardano (ADA) shows a steady increase, returning to the $0.74 level; however, recent changes on the 4-hour chart raise caution among traders.
TD Sequential Signal Raises Caution
Prominent crypto analyst Ali Martinez (@ali_charts) shared a chart on X indicating that ADA may be approaching a local top. According to the chart, the TD Sequential indicator, commonly used to anticipate potential trend exhaustion, has triggered a sell signal. This signal appears at the ninth candle of the sequence, often interpreted as a point where bullish momentum could begin to stall.
> "Cardano [$ADA] could be due for another pullback as the TD Sequential flashed a sell signal on the 4-hour chart!" — Ali Martinez.
Indicators of Growing Trend
The timing of the indicator's signal is noteworthy, arising after a strong recovery from a recent downturn. ADA's price has been climbing consistently, evidenced by a series of higher candles on the 4-hour time frame. The upward momentum has brought the token close to the $0.7428 level before the most recent bearish candle marked the ninth bar in the sequence.
Martinez’s chart places the gray arrow above this ninth candle, confirming the presence of the TD Sequential signal. In technical analysis, this type of signal is not an automatic reversal cue but often precedes short-term pullbacks or consolidation phases.
Possible Scenarios for Cardano (ADA)
At the time of the chart’s publication, ADA was trading around $0.7378. The appearance of a TD sell signal could prompt some caution among traders. However, some market participants are confident that ADA can continue rising as recent whale buying activity has reignited hopes that the asset can reach $1. The broader structure remains intact for now, but as ADA approaches a zone that has previously acted as both support and resistance, the next few candles will be crucial.
Martinez recently highlighted ADA’s similarity to the 2021 bull run, which sent it to its all-time high of $3.1. If the asset can avoid a bearish turn, it may soon target similar levels.
The price movement of Cardano (ADA) remains a focal point for analysts and traders. The TD Sequential signal could indicate an important moment in the market, suggesting the need for caution in future trading.
