Cardano pulled back from a $0.258 high set on August 22 to a low of $0.189 on August 30, retesting the $0.20 support zone. Analyst Ali Martinez flagged a TD Sequential buy signal on the daily chart, and swing structure across timeframes still points bullish.
Cardano [ADA] dropped from its $0.258 high on August 22 to a low of $0.189 on August 30, retesting the $0.20 support zone. Despite a slump in DEX activity, the altcoin has kept its broader bullish price bias, and the pullback could mark a buying opportunity.
Buy signal fires on the daily chart
In a post on X, crypto analyst Ali Martinez observed that the TD Sequential indicator fired a buy signal for Cardano on the daily timeframe. The previous three times the indicator gave this signal, a sizable price rally followed, making it a signal worth watching.
The swing structure on the daily chart is also bullish: ADA has set new swing highs over the past two months while holding a series of higher lows. The On-Balance Volume indicator has made higher lows since July, though it has not yet matched its May highs, while the Chaikin Money Flow held above +0.05, signaling strong buying pressure.
The price is retesting the $0.20 support zone, an area that acted as resistance in July and again in the first week of August. That history gives the zone a good chance of triggering a bullish reaction.
What traders are watching next
The 4-hour chart shows the same bullish swing structure. There, the $0.20 higher-timeframe support and resistance area lines up with the 78.6% Fibonacci retracement level at $0.19, reinforcing the zone's importance.
On-Balance Volume is relatively flat on the shorter timeframe, but the Chaikin Money Flow shows strong capital inflows, and sustained demand is needed to keep the uptrend intact. Investors and swing traders can expect a bullish reaction in the coming days, targeting the $0.238 local high and the $0.258 extension level. A breakdown below $0.171, unlikely at the time of writing, would mark a bearish structure shift.
Source: AMBCrypto
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