thecryptobasic.com
Popular crypto analyst Ali Martinez has turned bullish on Cardano after $ADA reached his previously identified downside target of $0.17.
Martinez’s latest outlook marks a notable shift from his earlier bearish warning that $ADA could face further losses. At the time, he highlighted declining whale holdings as one of the warning signs. Specifically, the number of wallets holding between 1 million and 10 million $ADA fell from 2,370 to 2,340, suggesting reduced participation among large holders.
Additionally, Martinez highlighted a bearish development in Cardano’s MVRV ratio, which formed a death cross against its seven-day simple moving average (SMA). Meanwhile, he also warned that the TD Sequential had also flashed a sell signal on $ADA’s daily chart.
TD Sequential Flashes Buy Signal as $ADA Targets $0.20
However, the technical picture changed after $ADA reached the $0.17 target.
Martinez now says the daily TD Sequential has produced a buy signal, suggesting that the recent downturn could be nearing exhaustion. Notably, his earlier bearish outlook also relied partly on the same indicator. Therefore, the shift from a sell signal to a buy signal could indicate a potential change in $ADA’s short-term trend.
With $ADA reaching his $0.17 downside target, Martinez has set $0.20 as his next price target. Reaching that level would represent a 14.28% increase from the $0.1750 area.
In Martinez’s view, a move toward $0.20 could indicate that buyers are beginning to regain control. So far, $ADA has shown early signs of recovery following his latest forecast. The token climbed to around $0.1750, gaining 1.02% over the previous 24 hours.
Nonetheless, spot trading volume declined by 15.39% to $168.85 million, suggesting that the recovery has yet to attract stronger spot-market participation.
Cardano DeFi Activity Shows Signs of Recovery
Meanwhile, activity across Cardano’s DeFi ecosystem has provided some encouraging signals.
On-chain DEX volume has reached $90 million over the past 30 days, representing a 37.5% increase from the previous period, according to DeFiLlama data. Derivatives and perpetual trading activity has also strengthened, reaching approximately $131.5 million.
However, not every Cardano metric points to a recovery. Cardano’s total value locked (TVL) has continued to decline, falling to $65.1 million. This figure stands significantly below the network’s 13-month peak of $437.2 million recorded in August 2025. Specifically, Cardano’s TVL has dropped by approximately 85% from that previous high, according to data from DeFiLlama.
Therefore, while improving trading activity and the latest TD Sequential buy signal offer some optimism, the sharp decline in TVL remains a key challenge for $ADA and its broader DeFi ecosystem.