- Cardano price bounced from $0.79 support after a prolonged downward trend.
- TD Sequential indicator issued a buy signal for ADA on September 2.
- A bullish daily candle with a long wick suggests strong buyer interest.
Cardano price is indicating a possible turnaround after weeks of continuous downward pressure. One of the major technical indicators, the TD Sequential 9 buy setup, has just been activated, which means that the trend is exhausted at the support level of $0.79. As a bullish price action has formed and great purchase interest is shown in the recent candlestick, the momentum may be changing. Traders will now be very keen to confirm a short term bounce or recovery.
Cardano Price Signals Bullish Reversal as TD Sequential Buy Setup Emerges at Key Support
According to Ali Chart, the daily chart of Cardano, published on X, shows a strong argument about a possible bullish reversal, backed by the TD Sequential indicator. A change in momentum could be coming and therefore, according to the recent post by Ali, that is: Cardano $ADA is a buy, according to the TD Sequential indicator!, the momentum change could be coming.
The chart indicates that ADA has been on a long-lasting downward trend since mid-August, with decreasing highs and lows. Bearish candles, particularly on August 18 and 25, indicated intensive selling pressure which changed prices between above 0.90 to below 0.79. But this momentum seems to be wearing out.
On the 2nd of September, the TD Sequential gave a 9 buy signal, as traders tend to use this signal to identify possible exhaustion in a trend. Historical data shows that a 9 count may be followed by a short-term bounce or by a complete reversal of the trend.
This indicator is reinforced by the September 2 candlestick: a bullish candlestick with a long lower wick, showing that buyers entered the market at the level of support at about 0.79.
Moreover, the reversal thesis was reinforced by the fact that the bounce followed a string of directionless candles and a minor bullish reversal in the price movement.
Although the confirmation is yet to be made, generally through the close above 0.835, the arrangement is inclined towards the possible increase in the direction of 0.85-0.87. This may be an early indicator of accumulation, but care should be taken.
