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The price activity of Cardano, the 10th largest cryptocurrency, might be key to watch in the short term as a popular indicator has indicated a signal on the ADA chart.
According to crypto analyst Ali, the TD Sequential indicator has flashed a sell signal on the ADA daily chart, suggesting a possible short-term correction.
The TD Sequential indicator just flashed a sell signal on the #Cardano $ADA daily chart, suggesting a potential short-term correction! pic.twitter.com/25CvMl9BuT
— Ali (@ali_charts) September 27, 2024
The TD Sequential indicator is a popular technical analysis tool used to identify potential trend exhaustion and price reversals. When this indicator flashes a sell signal, it typically suggests that the asset may be overbought and could be due for a pullback.
While signals provided by a specific trading indicator might be speculative, Ali's tweet suggests caution in the near term as the likelihood of profit-taking remains.
The Cardano price has gained momentum since the past week as markets rallied in response to the Fed's rate cut.
Specifically, Cardano began to rise after reaching lows of $0.326 on Sept. 16. The rally sustained with ADA reaching highs of $0.415 on Sept. 27. ADA price action is keenly contested by bulls and bears, but the bulls have not yet given up ground.
At the time of writing, ADA was down 0.30% in the last 24 hours to $0.40 and up 13% weekly. The target of the current rally is $0.49, but bulls are likely to face stiff resistance at $0.44 near the daily SMA 200.
On the other hand, if the ADA price fails to remain above $0.40, a drop below $0.36 may result in ADA price consolidation between $0.31 and $0.40 for some time.
Cardano turns seven
The Cardano network has just turned seven, celebrating immense growth. According to IOG's most recent update, transactions on the Cardano network have reached 96.94 million, with 10.40 million native tokens, 1.335 million delegated wallets and 88,340 plutus scripts.
The Cardano network recently saw the release of node v.9.2.0, which included several improvements and bug fixes. A minor update to the previous version, Cardano node v.9.2.1, was also published, which improves certificate validation performance.
In related news, Lace v.1.16 is now available, introducing improved tools for managing multiple addresses, increasing dApp security and fixing bugs.