Cardano ($ADA) cryptocurrency has issued a new bullish signal, reaching the downside target of $0.17 set by Ali Martinez. The analyst expected this to trigger a short-term bounce towards the $0.20 level.
In a social media post on August 18, Martinez pointed to a buy signal on the daily TD Sequential indicator. This situation arose after a prolonged decline from recent highs around $0.20 and is often viewed by traders as a sign that selling pressure may be ending.
According to Martinez's analysis, after dropping to the $0.17 level, Cardano's price completed the formation of a TD Sequential '9' buy setup on the daily timeframe. The analyst noted that $ADA has already reached the previously defined target of $0.170 and is now poised for a potential recovery.
Following the latest buy signal, Martinez is targeting a return to $0.20, which would represent a gain of approximately 15% from the current price zone.
The $0.20 level also holds technical significance, as it acted as a key resistance zone during Cardano's recent rally. It also remains a psychologically important barrier for bulls.
Statistically, buy signals from the TD Sequential indicator have been used to identify trend exhaustion and potential reversal points after extended declines.
Previous buy signals for $ADA generated by this indicator were followed by short-term recovery rallies. However, overall market conditions remain the determining factor.
A move above $0.18 would strengthen the chances of a recovery and open the path for a retest of the $0.20 level. A break above this barrier would allow targeting the $0.22 area, where analysts previously identified the next major resistance zone.
However, a failure to hold the $0.17 support zone would invalidate the bullish outlook and subject $ADA to deeper price declines.
At the time of publication, $ADA was trading at $0.17, up approximately 2.2% over the last 24 hours. Weekly losses remain at 1.5%.
$ADA is trading below its 50-day simple moving average (SMA) at $0.1751 and significantly below its 200-day SMA at $0.2259, indicating the persistence of a bearish trend.
The cryptocurrency's 14-day relative strength index (RSI) at 44.29 indicates neutral momentum, suggesting weakening selling pressure without a clear signal for a bullish reversal.
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