- Cardano (ADA) was trading below $0.60 with the TD Sequential indicator flashing a sell signal.
- Crypto analyst Ali says the indicator previously showed a bearish reversal against ADA.
- ADA is still targeting the psychological $1 level.
Cardano is trading near $0.60 on Saturday afternoon and is up about 1.3% in the last 24 hours. However, as the price falls below the above area, sellers could see further movement amid a broader cryptocurrency market correction.
Analysts say the ADA is facing a correction.
A sell signal in the form of the TD sequential indicator on a 3-day chart for Cardano. This is a forecast shared by cryptocurrency analyst Ali via X on February 23rd.
From technical analysts, TD Sequential helps traders identify potential reversal points in asset market trends. This allows traders to pinpoint buy or sell signals. This is usually the case when the token price is rising or falling.
As the analyst pointed out, the price of Cardano has previously been adjusted downwards when this indicator was in a downward trend. Ali wrote:
“TD Sequential indicator shows sell signal on #Cardano 3-day chart. It is important to remember that $ADA has experienced price corrections the last two times this indicator has sent bearish signals!”
Here is the chart shared by the analyst:
Cardano hit a high of $0.63 on February 20, but could fall to support at $0.50 if bulls fail to hold above $0.57. The next major support area could be around $0.45.
On the other hand, if the sell signal is invalidated, buyers may target intraweek highs. Potential resistance above $0.60 could lie at the mid-December high of $0.66. Above this level, ADA may rise to the psychological $1 level.