Cardano (ADA) might be on the verge of a price slump, as prominent market analyst Ali Martinez projects a retest of $0.30 upon the confirmation of a sell signal from the TD Sequential indicator.
The TD Sequential indicator is a tool for identifying potential trend reversals or trend continuation in asset prices. It leverages a sequence of price bars and provides signals upon certain conditions, helping market participants make decisions about buying or selling the asset.
ADA’s Rollercoaster Ride
In his most recent analysis, Ali emphasized that the TD Sequential indicator has presented a sell signal on the Cardano daily chart. Notably, this sell signal came up today amid the recent roadblock to ADA‘s uptrend which has caused a discouraging 5.26% intraday decline.
It bears mentioning that the asset is on an impressive run which began on Oct. 19. ADA had dropped to a low of $0.2420 on Oct. 18 before staging this massive comeback. However, since Oct. 18, Cardano has appreciated by 42.5%, recouping all the losses from July to late October. TVL has also seen an uptick, recently overtaking Bitcoin.
Amid the run, the TD Sequential presented a sell signal on Oct. 31. The asset eventually tumbled 3.33% that day but recorded a rebound that kept it afloat till today. Now that the indicator has flashed another sell signal, Ali believes a correction of some of these gains it accumulated would occur.
At the time of Ali’s disclosure, ADA changed hands at $0.3493, with a 3.72% drop. The asset has continued to slump since then, currently trading for $0.3438. Ali revealed that he expects Cardano to witness a correction from the current price position.
ADA to Retest $0.30 Amid Accumulation Trend
According to the analyst, this correction would take ADA to the $0.30 support level. Data from the chart confirms that the bulls have a major stronghold at $0.3410. However, a breach of this level would bring $0.3158 into play, the last line of defense above $0.30.
Notably, such a drop would not mark a complete correction to the Oct. 18 low. Rather, it would drop Cardano to the $0.3017 levels it traded at in August. It bears mentioning that Ali noted that this slump would mark a retest, suggesting that a possible rebound could be in the works.
The expectations of a retest follows a massive accumulation trend observed in the market last month. IntoTheBlock disclosed today that whale addresses amassed 1.89 billion ADA last month, worth $600 million at current prices.
$ADA got a strong vote of confidence last month. Big holders accumulated 1.89 billion ADA last month, translating to over $600 million at current prices.
— IntoTheBlock (@intotheblock) November 7, 2023
Data confirms that most of these purchases occurred at a price range of $0.249 and $0.271. At ADA’s current price of $0.3438, these whales are in profit despite the intraday decline. Notably, market activity remains high, with a 24-hour volume of $453 million, up 38%.