Technical analysis of Cardano: TD Sequential indicator signals potential recovery as ADA consolidates critical support

Cardano (ADA) presents an interesting technical scenario after forming a buy pattern through the TD Sequential indicator near the $0.37 zone, as observed on December 14. With the current price at $0.35, the asset is testing this historically significant region, which acts as a barrier between continued decline and a possible reversal.

The TD Sequential indicator and its relevance for ADA

The indicator developed by Tom DeMark continues to be a valuable tool for identifying potential trend changes. In the case of Cardano, the signal captured near the $0.37 support reinforces the importance of this region in the medium-term context. As pointed out by analysts like Ali Martinez, consolidation above this level is essential to sustain the recovery movement.

Market dynamics and outlook

Activity from large investors (whales) and derivatives indicators reveal a still cautious stance, but with signs of interest at lower levels. Maintaining support at $0.37 could pave the way for a rebound toward $0.54, representing a significant move from current levels.

However, if ADA fails to stay above this critical level, a downward penetration would prolong the corrective period, intensifying selling pressures. The next move will be crucial in defining the asset’s short-term direction.