Cardano (ADA) climbed 1.94% in the past 24 hours, outpacing the broader crypto market and extending its 30-day rally to +28.35%.
However, a new TD Sequential Sell Signal on the 4-hour chart suggests a potential cooldown is imminent. The indicator, shared by analyst Ali Ali Martinez, typically marks local exhaustion after short-term price surges.
Despite the warning, ADA remains fundamentally supported by strong governance and bullish ecosystem upgrades, softening the risk of a deep correction.
Community-backed upgrades drive bullish narrative
Cardano recently completed a historic on-chain governance vote, approving a $71 million treasury withdrawal to fund core upgrades like Hydra, Ouroboros Leios, and Mithril. Backed by 74% of voters, the milestone signals strong community alignment around protocol scaling and decentralization.
Hydra, in particular, is designed to enable 1M+ TPS off-chain, potentially addressing long-standing scalability concerns. The phased funding model, tied to verified development progress, adds accountability and reinforces confidence in Cardano’s roadmap.
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Altcoin market rotation lifts ADA sentiment
ADA’s recent strength also coincides with a broader rotation into altcoins. The TOTAL2 index — representing the altcoin market cap excluding Bitcoin — broke a 3-week downtrend, while Bitcoin dominance (BTC.D) dropped from 62.5% to 61.2%.
While Bitcoin failed to hold its $116K level, capital has temporarily shifted to assets like ENA (+12%), MYX (+100%), and ADA. Still, the rotation is unfolding in thin liquidity conditions, as spot volumes across the market fell 65% — hinting at cautious risk-on behavior rather than full-blown conviction.
Technical signals conflict: Rebound meets resistance
ADA recently bounced off the 200-day EMA at $0.732, testing the 38.2% Fibonacci level ($0.7925) with RSI now recovering from oversold conditions. The MACD histogram also shows a waning bearish trend. Yet the TD Sequential ‘9’ sell setup suggests momentum may stall before reclaiming the $0.8449 resistance at the 23.6% Fibonacci mark.
If ADA closes below $0.74 with increased selling pressure, a pullback to the $0.72–$0.70 zone is likely. Conversely, sustained strength above $0.7925 would signal continuation toward new local highs.
Bottom Line
Cardano’s bullish fundamentals — community-led upgrades and rising altcoin momentum — remain intact, but short-term caution is warranted as technical exhaustion builds. A healthy retracement could offer new accumulation opportunities if support levels hold.
Kosta Gushterov
Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.