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ADA near key level as analyst says Cardano faces correction

source-logo  coinjournal.net 24 February 2024 20:12, UTC
  • Cardano (ADA) traded below $0.60 as a TD Sequential indicator flashed a sell signal.
  • Crypto analyst Ali says this indicator previously saw bearish flips for ADA.
  • ADA still eyes a run to the psychological $1 level.

Cardano is trading near $0.60 on Saturday afternoon, about 1.3% up in the past 24 hours. However, with price dipping below the above area, its likely sellers could eye further moves amid broader crypto market correction.

Analyst says ADA faces correction

A sell signal in the form of a TD Sequential indicator on Cardano’s 3 day chart. That is the outlook crypto analyst Ali shared via X on February 23.

In technical analysts, the TD Sequential helps traders identify a potential reversal point in an asset’s market trend. With it, traders can pinpoint buy or sell signals – with this usually the case for token prices either reversing upward or downward.

As the analyst notes, Cardano’s price has corrected downward on previous occasions when this indicator flashed bearish. Ali wrote:

“The TD Sequential indicator shows a sell signal on the #Cardano 3-day chart. It’s important to note that the last two times this indicator signaled bearish, $ADA experienced a price correction!”

Here’s the chart the analyst shared:

Cardano reached highs of $0.63 on February 20 but could fall to support at $0.50 if bulls fail to hold above $0.57. The next major support area could be around $0.45.

On the flipside, invalidation of the sell signal may see buyers target intraweek highs. Potential resistance above $0.60 could be at mid-December highs of $0.66. Above this level, ADA may run to the psychological $1 level.