- ADA’s latest Tom DeMark Sequential buy signal follows three recent signals that preceded rebounds of up to 50.9%.
- ADA trades above its 50-day and 200-day moving averages, with the $0.196-$0.203 zone emerging as key support.
- A break above $0.24 could open the path toward $0.256 and $0.275, while losing support may expose $0.178.
Cardano’s ADA has received a new Tom DeMark Sequential buy signal as the token holds above key moving averages. Analyst Ali Charts reported the signal on ADA’s daily chart, while recent setups on June 25, July 15 and August 18 preceded rebounds of 44.5%, 11.5% and 50.9%, respectively.
Analyst Points to Another ADA Rebound
Ali Charts said the latest Sequential reading could indicate another ADA rebound. The indicator has previously marked three recent lows before strong price moves. The June 25 signal came before a 44.5% rally, according to the analyst.
The July 15 signal preceded an 11.5% rise, while August 18 came before a 50.9% increase. However, the latest signal arrives after ADA recovered from a deeper decline. That move now leaves traders watching whether the token can maintain its recent structure.
ADA Moves Above Key Moving Averages
ADA traded near $0.27 to $0.28 in March before entering a prolonged decline. The selloff intensified in June, sending the token toward $0.158 to $0.16. The decline later stabilized between $0.14 and $0.16 in late June.
From July, ADA formed higher lows and broke above $0.178. In August, the token climbed toward $0.24 before profit-taking pushed it back toward $0.20. ADA now trades around $0.208, while the 50-day moving average stands near $0.203.
Meanwhile, the 200-day moving average is around $0.196. ADA remains above both averages, and the 50-day average has moved above the 200-day average.
Resistance Levels Keep ADA Traders Focused
The current setup places $0.196 to $0.203 as a key support zone. Above price, $0.217 represents the first resistance level, followed by $0.236 to $0.240. That higher zone previously faced strong rejection during August’s rally.
A break above $0.24 could expose $0.256 and later $0.275. However, losing the $0.196 to $0.203 area could send ADA toward $0.178. Volume also expanded during August’s advance before later moderating.
The reading adds another technical reference as ADA trades near $0.208. The RSI is at 66.60, with its average at 65.95, while the MACD line remains above its signal line.
