- Cardano’s weekly chart printed a TD Sequential buy signal, indicating seller exhaustion after an extended decline and shifting short-term market dynamics.
- The $0.37 price zone remains central to Cardano’s structure, acting as firm support that defines whether stabilization or renewed volatility follows.
- Despite the buy signal, daily charts show a bear flag pattern, keeping downside projections active unless key resistance levels are reclaimed.
Cardano price trades near $0.4074 today as market attention shifts to a key technical setup. Despite modest losses, a TD Sequential buy signal and firm $0.37 support keep ADA price outlook active amid cautious trading sentiment.
TD Sequential Buy Signal Draws Market Attention
A recent tweet from analyst Ali Martinez,, noted a TD Sequential buy signal on Cardano’s weekly chart. The signal appeared after a prolonged series of declining candles, suggesting slowing downside momentum rather than renewed strength.
The TD Sequential setup often emerges when selling pressure shows fatigue on higher timeframes. In this case, it follows ADA’s decline from the $0.80 range into the low $0.30s, reflecting extended bearish positioning.
Ali’s analysis stressed that the signal alone does not confirm a reversal. Instead, it reframes short-term risk, placing greater focus on key structural levels that must hold.
$0.37 Emerges as a Critical Structural Level
Action continues to revolve around the $0.37 area, which is an area that aligns with prior demand and lower Fibonacci extensions. Repeated long lower wicks formed on recent candles suggest that buyers are defending this zone with consistency.
As long as Cardano holds above $0.37 on a weekly closing basis, downside pressure appears contained. This behavior supports the view that accumulation may be occurring rather than broad distribution.
If this support holds, chart-based models indicate a potential move toward $0.54. This area aligns with the 0.618 Fibonacci retracement and marks a former breakdown zone where selling pressure previously increased.
Bear Flag Structure Maintains Downside Risk
Despite the weekly buy signal, daily chart structures continue to favor caution. Cardano has broken lower from a bearish pole-and-flag formation, reinforcing seller control in the short term.
Momentum indicators also reflect weakness, with hidden bearish divergence forming between price and the RSI. Cardano’s price formed a lower high,but the RSI climbed, suggesting the recent bounce may be weak.
Therefore a daily close under $0.370 could push ADA further down toward $0.259. This move could keep the token vulnerable until it reclaims resistance near $0.489 and $0.517.
