Cardano may be gearing up for a trend reversal after months of sustained downside pressure. A key technical indicator is now flashing a potential shift in momentum, raising hopes among traders that the worst of the recent drawdown could be over.
TD Sequential Signals Cardano Downtrend Exhaustion
Market expert Ali Martinez has revealed that Cardano’s TD Sequential indicator has flashed a buy signal. According to Martinez, a look at Cardano’s price chart on the weekly timeframe shows that ADA has printed a “black 9,” a TD Sequential indicator metric that signals trend exhaustion. It’s interesting to note that the 9 setup often appears at the end of a prolonged downtrend and precedes an uptrend lasting between a week and a month.
It’s interesting to note that Martinez claims this signal comes after a grueling six-month stretch in which ADA struggled to maintain bullish momentum. With selling pressure appearing to weaken, the emergence of this indicator suggests that the market could be entering a recovery phase. However, confirmation through price action remains essential.
For the bullish outlook to hold, Cardano bulls must defend the critical $0.23 support level on a weekly closing basis. This level now serves as the foundation for any potential rebound and will likely determine whether the buy signal plays out as expected. If ADA holds above this threshold, traders will eye upside targets at $0.32 and $0.37. A move toward these targets would signal renewed strength and potentially attract additional market participation.
Liquidations and Geopolitical Tensions Add Pressure
Meanwhile, the bullish signal emerged shortly after a severe liquidation wave hit the broader crypto market, underscoring the fragile sentiment among traders. CoinRemark recently reported that about $60 billion worth of positions were wiped out across the market in a sweeping deleveraging event.
According to CoinGlass data, in the past 24 hours alone, 105,872 traders were liquidated, totaling $310.95 million in liquidations. Long traders accounted for the majority of the losses, with $207.16 million wiped out, highlighting the extent of bullish positioning prior to the downturn.
Adding to the mixed outlook is a further escalation in the US-Iran conflict, as Iran reportedly attacked the Haifa refinery—one of the largest in the region. The development triggered a sharp spike in oil prices, intensifying fears of a broader global financial crisis and adding another layer of uncertainty to already volatile crypto markets. Meanwhile, it’s worth noting that US regulators recently classified ADA as a non-security, strengthening its market credibility and potentially paving the way for broader institutional adoption.
Downside Risk Still in Play For Cardano
Despite the optimistic signals, Martinez also included that downside risks remain for Cardano. A confirmed weekly close below the $0.23 support level would invalidate the TD Sequential setup and suggest that the broader downtrend remains intact. Such a breakdown could trigger further selling pressure, delaying any meaningful recovery and potentially pushing ADA into deeper consolidation.
For now, the market stands at a pivotal moment, caught between a promising reversal signal and the need for strong validation. According to CoinMarketCap, ADA trades around $0.26, up 0.1% over the past 24 hours, reflecting a cautious market response as traders await confirmation of a potential trend reversal.
Evans Kelvin
The CoinRemark Team
