ADA faces THIS critical decision zone – Is it time to buy?
- ADA is showing signs of a potential rebound as the TD Sequential indicator flashes a buy signal on the daily chart.
- ADA has formed a symmetrical triangle pattern, where the price action narrows between converging support and resistance lines.
Cardano [ADA] has recently shown promising signs of a potential rebound, with the TD Sequential indicator signaling a buy on the daily chart.
As the market navigates through consolidation, ADA’s technicals are presenting a crucial turning point.
A critical juncture for ADA
Analysis from AMBCrypto has shown that ADA has formed a symmetrical triangle pattern, where the price action narrows between converging support and resistance lines.
Source: TradingView
This pattern often precedes a breakout, and ADA appears to be at a critical juncture where significant price movement is expected.
The apex of the triangle indicates ADA will soon make a decisive move. If the price breaks upwards, it could signal the start of a bullish trend.
Conversely, a downward break would suggest continued bearish pressure.
A turning point in ADA’s trend
The TD Sequential indicator has flashed a buy signal on the daily chart for ADA, as noted in the analysis by ali_charts.
Source: X
This signal is particularly important because the TD Sequential is known for identifying exhaustion points within a trend.
Given that ADA has been in a downtrend, this buy signal suggests the current bearish phase may be nearing its end.
The buy signal aligns well with the consolidation phase indicated by the symmetrical triangle, strengthening the case for a potential upward shift in ADA’s price.
Balancing forces at play
The Funding Rate for ADA is currently close to neutral, standing at 0.0035, which implies that there is no strong bias toward long or short positions in the market.
However, the slightly positive rate hints at a small premium for holding long positions. This could indicate a growing interest in buying, which may support a price increase if more traders decide to take long positions.
Also, the futures bid and ask delta, hovering at 3.473M, shows a relatively balanced market, with buying and selling interest nearly matched.
Despite this, the positive delta suggests a slight leaning toward buying activity, which, if sustained, could drive ADA’s price higher.
Contrarian indicators suggest…
The Whale Index for ADA is currently at -163.9550, suggesting bearish sentiment from large holders. This may seem concerning at first glance, but the Whale Index often acts as a contrarian indicator.
When whales are less optimistic, it can indicate a potential buying opportunity for retail investors, as large holders may be less inclined to sell at these levels.
The negative Whale Index could signal that selling pressure is diminishing, creating space for a price increase.
If this trend reverses and whales start accumulating ADA, it could significantly boost the price, aligning with bullish signs from the TD Sequential and the potential breakout from the triangle.
– Read Cardano (ADA) Price Prediction 2025-26
The technical setup for the altcoin shows increasing signs of a potential rebound.
The symmetrical triangle pattern, bullish MACD crossover, TD Sequential buy signal, neutral to slightly positive Funding Rates, and contrarian Whale Index suggest a consolidation phase that could lead to a breakout.
If these indicators hold, ADA might experience a significant price increase, presenting a potential buying opportunity for traders.
