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Cardano ($ADA) could finally be entering a period of upward expansion after an extended period of severe price correction.
Notably, $ADA, the 11th-largest cryptocurrency by market cap, has been in a downtrend for months. As it stands, March could be its seventh consecutive month of red candlesticks unless things change fast.
Key Points
- Cardano could finally be entering a period of upward expansion after an extended period of severe price correction.
- The bearish close in February marked the sixth straight month in which $ADA did nothing but test lower prices.
- The TD Sequential indicator flashed a “black 9,” a bullish reversal signal, hinting that the persistent downward momentum could finally be nearing its end.
- $ADA needs to close above the $0.23 support level on the weekly timeframe to validate the bullish move.
- If this support holds, Cardano could target a rebound towards $0.32 and subsequently $0.37.
Steady Decline for Six Months
Cardano printed its first red candlestick in September, following notable bullish price actions in July and August. The coin initially trended higher that month, but momentum faded, resulting in a meager 0.50% decline.
What has followed since then is a strong downtrend, with $ADA dropping 71% from its September highs near $0.95 to its current market price. Notably, it once fell lower to retest its previous cycle’s lows near $0.22 before bulls stepped in to defend the key support area.
The bearish close in February marked the sixth straight month in which $ADA did nothing but test lower prices. While it has followed a similar trajectory this month, recent analysis has identified what could be a turning point for the asset’s price.
Cardano Prints Buy Signal
Specifically, prominent market analyst Ali Martinez disclosed in a Friday tweet that $ADA has printed a buy signal on the weekly timeframe. The TD Sequential indicator flashed a “black 9,” a bullish reversal signal, hinting that the persistent downward momentum could finally be nearing its end.
He noted that this setup typically precedes a period of price expansion. According to him, Cardano might recover to higher prices in the next one to four weeks, a factor that depends on the broader market conditions.
Notably, its appearance on the weekly timeframe further adds to its credibility. This suggests that while price looks weak on shorter timeframes, prices would eventually align with the direction of higher timeframes.
Cardano Price Blueprint
Nonetheless, a few conditions must align to confirm this potential price expansion. Martinez noted that $ADA needs to close above the $0.23 support level on the weekly timeframe to validate the bullish move. This suggests that a close below this key level invalidates the TD Sequential buy signal.
Meanwhile, if this support holds, Cardano could target a rebound towards $0.32 and subsequently $0.37. From here, this reflects an 18.5% and 37% price increase. $ADA currently sits at $0.27, well above the support level, keeping the move on course.