
TD sequential hints at a sell signal on the 4-hour chart, indicating potential reversal again for Cardano, but the approved $71 million for the network upgrade is set to maintain bullish momentum.
Cardano has been on a month-long bullish run, rising by over 29%. Although chart analysis signals a possible sell-off and price drop, as in the last 7 days, community-approved funds for major network upgrades keep ADA in the profit zone. Per data from CoinMarketcap, confidence in Cardano is high, up 3% in the last 24 hours.
Another price reversal looms for Cardano
Cardano has been in the green zone for the most part of the last 30 days, recording a 30% gain. But in the last 7 days, it has experienced some pullbacks, dropping from $0.83 to $0.69.
At press time, Cardano is back in the $.0.7 zone, but this increase may be short lived as top analyst Ali charts spotted a possible reversal as the TD (Tom Demark) sequential shows a sell signal on the 4-hour candle.
The sell signal indicates a potential price pullback that may see Cardano fall again, dropping back to $0.74 to $0.70 key support level.
$71 Million Community-backed Upgrade Keeps Cardano bullish
A historic feat, described as the first ever community-approved funds for core development, saw $71 million devoted to a 12-month planned upgrade for Cardano.
The approved developmental fund, which got a resounding vote, will improve Cardano’s transaction processing speed, onboarding efficiency, and much more. To ensure a follow-through, a committee is in place to review monthly upgrades and look into the cost breakdown for each stage of development.
Following this monumental announcement, market data showed an uptick in Cardano’s price just a day later, which was sustained and eventually led to a 3% increase. The recent rise is set to keep Cardano bullish.
Cardano Eyes a Return to $0.844
Currently trading at $0.754, Cardano is above its EMA of $0.732 and may soon hit $0.7925 (38.2%) Fibonacci level. If the momentum is sustained, it may surge to break resistance at $0.844 and test new local highs.
However, if selling pressure hits again and RSI drops below 30, Cardano could be in an oversold condition, dropping to $0.70 or even lower.
Based on market data in the last 24 hours, Cardano is tending bullish, maintaining a 3% price surge and over 5% increase in trading volume.