The TD Sequential indicator has signaled a possible correction for Cardano, raising concerns about its short-term price direction.
ADA's price has surged to $0.415, but bulls face resistance at $0.44 and risk consolidation if prices drop below $0.40.
Cardano celebrates its seventh anniversary, with the network nearing 97 million transactions and introducing new updates for security and performance.
Cardano (ADA), the 10th largest cryptocurrency, is witnessing significant price activity, which might indicate a possible correction in the short term. The TD Sequential indicator, a popular tool in technical analysis, has flashed a sell signal on the ADA daily chart, suggesting that the asset may be overbought and could soon see a pullback.
According to crypto analyst Ali, who shared the insight via Twitter, the sell signal could indicate a potential exhaustion of the current upward trend in ADA's price. The TD Sequential indicator is widely used by traders to identify trend reversals and periods of price exhaustion. In this case, the appearance of a sell signal suggests that ADA's recent price momentum may not last much longer.
https://twitter.com/ali_charts/status/1839805720767627754
Price Trends and Key Levels to Watch
ADA's price has seen notable growth over the past week. After hitting a low of $0.326 on September 16, the price of Cardano surged to a high of $0.415 by September 27. However, at the time of writing, ADA was slightly down 0.30% in the past 24 hours, trading at $0.40. Nevertheless, it still recorded an impressive 13% gain over the week.
Despite this positive movement, bulls are likely to face resistance at $0.44, near the daily 200 SMA (Simple Moving Average). If the price fails to maintain its position above $0.40, a potential drop below $0.36 could lead to consolidation between $0.31 and $0.40 for some time. This would place a pause on the bullish momentum ADA has experienced in recent days.
Cardano Celebrates Seven Years of Growth
As Cardano marks its seventh anniversary, the blockchain network continues to grow in terms of usage and development. Data from Input Output Global (IOG) shows that the Cardano network has processed nearly 97 million transactions to date. The network also boasts over 10 million native tokens, 1.33 million delegated wallets, and 88,340 Plutus scripts.
The latest network updates include the release of Cardano node version 9.2.0, followed by a minor update, version 9.2.1, which improved certificate validation performance. Additionally, Lace version 1.16 was introduced, bringing enhanced tools for managing multiple addresses and improving decentralized application (dApp) security.
