Key Takeaways
What signals are boosting Cardano’s bullish case?
TD Sequential buy signal and $2.06M exchange outflows point to reduced sell pressure, while rising perps and DEX trading volumes boost ADA’s liquidity and support bullish momentum.
Which price levels are key for ADA’s next move?
$1.00 is a critical resistance, with potential upside toward $1.20 if bulls break through. Downside volatility may occur near $0.88 and $0.84 liquidation clusters.
Cardano [ADA] has flashed a TD Sequential buy signal after weeks of weakness, hinting that momentum could shift in favor of bulls.
This comes after ADA’s prolonged decline, where the indicator previously timed the market top, strengthening its current relevance.
On the four-hour chart, ADA has shown early signs of stabilization, with candles attempting to reclaim recent losses.
Can Cardano push towards $1.20?
ADA continued to respect its ascending trendline at press time, establishing it as a critical support zone in recent sessions.
Each test of this trendline has triggered renewed buying interest, helping bulls defend short-term levels.
The chart shows immediate resistance around $1.00, which remains a psychological threshold for traders.
If ADA can clear this zone decisively, the next leg higher could extend towards $1.20. Momentum indicators reflect steady recovery potential, supported by the broader market’s resilience.
The ascending structure highlighted ADA’s technical strength and positioned it favorably for a breakout attempt if demand persists.
Source: TradingView
Perps, DEX rise together
Cardano’s trading activity has accelerated, reflecting increased investor engagement across derivatives and spot markets.
Perpetual Futures volume recorded a 10% weekly jump, surpassing $29 million in the last seven days, highlighting stronger speculative positioning.
Decentralized exchange activity also grew, with weekly volumes adding nearly 3% to reach $27.75 million, with a daily surge of 5.41 million.
This convergence of demand across both on-chain and derivatives platforms showed broad participation, a healthy sign for ADA’s liquidity profile.
Rising volumes suggested that market conviction was firming, which could fuel a price follow-through if technical levels are breached, particularly around the $1.00 barrier.
Cardano: Sell pressure strengthens
Exchange data revealed that ADA registered outflows of $2.06 million, signaling a reduction in tokens available for immediate selling.
Such consistent withdrawal activity often reflects long-term conviction among holders who prefer self-custody.
By reducing exchange supply, this dynamic helps limit near-term selling pressure, which complements the bullish TD Sequential signal.
The combination of shrinking liquidity on exchanges and strengthening technical support zones increases the likelihood of a sustained uptrend.
Investors appear less interested in short-term profit-taking, focusing instead on broader accumulation patterns that could favor ADA’s rebound in the coming weeks.
Liquidation at $0.88 and $0.84: Barrier or fuel?
Cardano’s liquidation heatmap highlighted dense clusters near $0.88 and $0.84, creating zones of heightened interest for traders.
These areas marked potential liquidity pools where price volatility could intensify if tested.
Such clusters can serve dual roles, acting as barriers during downward moves but also as fuel for rallies if shorts are squeezed.
The presence of these zones reflected concentrated leverage, suggesting price reactions may be sharp should ADA retest them.
Combined with rising volumes and reduced sell pressure, these levels will be closely monitored, as their resolution could dictate ADA’s next short-term trajectory.
Is Cardano primed for its next breakout?
The alignment of technical signals, growing trading activity, and reduced sell pressure paints a bullish backdrop for Cardano.
With the TD Sequential indicator flashing green, exchange outflows tightening supply, and volumes rising across derivatives and DEXs, ADA holds multiple supports for a recovery.
Key zones at $0.88 and $0.84 may define short-term volatility, but the prevailing trendline suggests upside potential remains intact.
If buyers can maintain momentum, ADA could test $1.00 and possibly extend toward $1.20, making the current setup one of the most compelling in months.
