Cardano’s native token remained notably down over the past week, reflecting the broader bearish sentiment across the cryptocurrency market.
However, one widely used technical metric—which has proven reasonably accurate in the past—indicates the possibility of a near-term rebound.
Is a Local Bottom Forming?
At the time of writing, ADA is trading just below $0.25, a decline of roughly 10% from nearly $0.28 a week earlier. Popular analyst Ali Martinez observed that the TD Sequential indicator produced a buy signal today, suggesting the token could be poised for a recovery.
Martinez pointed out that the TD Sequential has a track record of correctly anticipating short-term momentum shifts for ADA. For instance, it issued a sell signal on May 10, and the token subsequently fell about 15% over the following ten days.
“Now that this cooling-off phase has fully run its course, the same indicator is flashing a buy signal today. This implies that a local bottom is forming,” he argued.
Martinez identified the first rebound target at $0.255 if buying pressure materializes near current levels. Surpassing that level could open the path toward testing $0.262. Conversely, he cautioned that the bullish scenario would be invalidated if ADA fails to hold support around $0.246.
Earlier this month, Martinez emphasized the importance of the $0.25 level, noting it has historically acted as a key turning point. In January 2023, ADA bounced from this area and rose about 88% in the following weeks. In September 2023, the same zone served as support again and preceded a substantial 243% rally.
Another commentator, Sssebi, described ADA priced at $0.25 as “extremely undervalued,” and highlighted ongoing developments within the Cardano ecosystem as a reason for a bullish outlook.
Could Losses Continue?
It’s worth noting that Sssebi’s forecasts have varied. Earlier in the week, the analyst suggested ADA could decline further if Bitcoin also weakened.
“Considering that ADA got rejected exactly at the upper trendline of the descending channel, we can assume that it will also retest the bottom of the channel around $0.22,” they stated.
Erick Crypto shared a cautiously bearish view as well, saying ADA remains inside a bearish structure with sellers in control. At the same time, he acknowledged that the area near $0.25 could become a solid support zone if buyers step in and confirm it with volume.
Overall, market participants are watching key levels closely. A confirmed TD Sequential buy signal and sustained buying at $0.25–$0.255 could mark the start of a short-term recovery, while a break below roughly $0.246 would undermine the bullish case and raise the prospect of further declines toward the channel low near $0.22.