Cardano (ADA) has flashed a fresh bullish signal after reaching analyst Ali Martinez’s downside target of $0.17, prompting expectations of a short-term rebound toward the $0.20 level.
In an X post on August 18, Martinez highlighted a buy signal on the daily TD Sequential indicator.
The setup emerged after a prolonged decline from recent highs near $0.20 and is often viewed by traders as a sign that selling pressure may be nearing exhaustion.
According to the analysis, Cardano completed a TD Sequential “9” buy setup on the daily timeframe after falling to the $0.17 area. The analyst noted that ADA had already reached his previously identified $0.170 target and is now positioned for a potential recovery.
This outlook comes as the cryptocurrency retreats from an August peak close to $0.20 before finding support around current levels.
Following the latest buy signal, Martinez is targeting a move back to $0.20, which would represent a gain of roughly 15% from the current price zone.
The $0.20 level also carries technical significance, having served as a key resistance area during Cardano’s recent rally. It remains an important psychological barrier for bulls.
ADA’s increased volatility
The bullish signal arrives after a period of heightened volatility for Cardano. Earlier this month, Martinez warned that several bearish indicators, including declining whale activity and a sell signal on the TD Sequential indicator, could push ADA toward $0.17. That downside target has now been reached, creating conditions for the latest buy setup.
Historically, TD Sequential buy signals have been used to identify trend exhaustion and potential reversal points following extended declines.
Previous ADA buy signals generated by the indicator have been followed by short-term relief rallies, although broader market conditions remain an important factor.
For bulls, a decisive move above $0.18 would strengthen the recovery case and open the door for a retest of $0.20. A breakout above that level could shift momentum further in favor of buyers and potentially target the $0.22 region, where analysts previously identified the next major resistance area.
However, failure to hold the $0.17 support zone could invalidate the bullish outlook and expose ADA to deeper losses.
ADA price analysis
By press time, ADA was trading at $0.17, up about 1% over the past 24 hours. However, the asset remains down roughly 7% on the weekly timeframe.
ADA is trading slightly below its 50-day simple moving average (SMA) of $0.1751 and well below its 200-day SMA of $0.2259, indicating that the broader trend remains bearish.
Meanwhile, the cryptocurrency’s 14-day relative strength index (RSI) of 44.29 points to neutral momentum, suggesting that selling pressure is easing, although there is not yet a strong bullish reversal signal.
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