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ADA’s surprise buy signal: is the next leg up starting?

ADA’s surprise buy signal: is the next leg up starting?

ADA’s surprise buy signal: is the next leg up starting?

As the cryptocurrency market reverts to its indecisiveness between bulls and bears, Cardano (ADA) may be showing signs that its recent weakness is giving way to strength through a fresh buy signal from the TD Sequential indicator.

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Specifically, the technical indicator has historically called both local tops and bottoms with impressive accuracy, and after timing ADA’s last peak, the same tool now suggests that the asset is entering a new bullish phase, per an analysis by crypto expert Ali Martinez on September 16.

Cardano TD Sequential Source: Ali Martinez
Cardano TD Sequential Source: Ali Martinez

Indeed, over the past several weeks, Cardano has been consolidating after its mid-summer rally, struggling to maintain momentum and frustrating holders who expected a faster breakout. But if history repeats itself, the current setup could mark the early stages of Cardano’s next move higher.

Echoes of past cycles

One of the most compelling arguments for optimism is ADA’s apparent repetition of its last major market cycle. The analyst has noted that the current structure of consolidation and accumulation closely resembles the 2020-2021 period, when Cardano broke out from extended lows to reach a cycle high.

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Cardano price movement analysis and comparison. Source: Ali Martinez
Cardano price movement analysis and comparison. Source: Ali Martinez

As it happens, ADA consolidated in a wide range in the 2018-2021 period before breaking out and ultimately rallying toward the $3 mark at its cycle peak. What stands out now is that Cardano’s 2022-2025 structure is unfolding in an almost identical fashion.

At press time, the crypto industry’s tenth-largest asset by market capitalization was changing hands at the price of $0.8721, which suggests a 1.67% gain in the last 24 hours, a drop of 1.86% across the previous seven days, and a 10.83% decline on its monthly chart.

Cardano price 24-hour chart. Source: CoinMarketCap
Cardano price 24-hour chart. Source: CoinMarketCap

For now, the signals suggest that patience could pay off. If Cardano can follow through on its buy signal and repeat its cycle pattern, the coming weeks may mark the start of a stronger trend. The question is whether this setup delivers another explosive rally or fizzles out as just another false dawn.

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