Cardano (ADA) Potential Sell Signal Identified: Analyst
In a recent technical analysis by crypto analyst Ali Martinez, a potential sell signal has been identified on the three-day chart for Cardano (ADA) against the US dollar. The analysis suggests caution among ADA traders due to the appearance of a bearish signal from the TD Sequential indicator.
A Classic Sell Signal
Martinez’s chart showcases the TD Sequential indicator presenting a ‘9’ signal, which is considered a classic sell indication. This signal suggests that the current trend may be exhausted and a reversal could be imminent. Previous occurrences of this signal on Cardano’s chart were followed by price corrections for ADA.
How Low Could ADA Price Retrace?
As of February 23, the ADA/USD pair shows a complex interplay between bullish and bearish signals on the daily time frame. The ADA price is currently trading above several key Exponential Moving Averages (EMAs), indicating an underlying bullish sentiment in the market.
- The Fibonacci retracement levels highlight significant levels of potential support and resistance:
- The 0.236 level at $0.5866 acts as a minor resistance level.
- The 0.382 level at $0.5203 and the 0.5 level at $0.4667 are key support zones to watch if a bearish reversal occurs.
- A break below these levels could signal a deeper retracement towards the 0.618 level at $0.4131 or even the 0.786 level at $0.3368.
- The most crucial support at the moment is the 20-day EMA.
While there are hints of bearishness, there are still good arguments to be bullish on Cardano. However, if the price does not hold above several key EMAs on the daily chart, the trend change could be confirmed.
By
By
By
By
By