Cardano is at a crucial point as recent indicators show mixed market signals.
According to crypto analyst Ali Martinez, the TD Sequential indicator has printed a buy signal on Cardano’s 3-day chart, hinting at a possible market reversal.
This technical pattern often marks the exhaustion of selling pressure and the beginning of a new upward phase.
It is suggesting that bearish momentum may be fading, giving buyers a potential opportunity to regain control.
Historically, similar signals have preceded notable recoveries in ADA’s price, adding weight to the current setup.
At the time of analysis, Cardano is trading near $0.57, a level that has acted as strong historical support.
Holding above this zone could encourage renewed investor confidence and spark fresh accumulation.
If ADA maintains strength around this area, it might pave the way for a rebound toward higher resistance levels.
However, a decisive drop below $0.57 could negate the bullish outlook and extend the ongoing correction.
At press time, data from CoinGecko showed Altcoin is trading at $0.5284 with over $1.82 billion in daily volume. Price fell by 2.83% in the past 24 hours and 17% across the week.
Cardano drops below key support level
Cardano (ADA) has dropped below its 200-week moving average, which is now sloping downward, a technical sign of sustained weakness.
Historically, this long-term moving average serves as a key indicator of trend direction and investor confidence.
When prices trade below it, it often signals that the market remains under bearish control and that recovery momentum is limited.
The fact that the moving average itself is declining further reinforces the idea that long-term sentiment has shifted negative.
Analyst Jesse Olson highlighted that ADA’s current price has returned to the same levels seen in March 2021, effectively erasing over four years of gains.
This regression to a previous accumulation zone suggests that Cardano is at a critical juncture, one where investor conviction will be tested.
While this setup doesn’t rule out a potential bounce, the breach of this crucial long-term support is concerning.
It highlighted that the broader market structure remains fragile and bullish conditions are not yet in play.