The price of the Cardano (ADA) cryptocurrency has been falling for the past three days, interrupting its previous two weeks of gains. Adding to the negative momentum, a key technical indicator is now flashing a sell signal that could foreshadow further declines ahead.
According to crypto analyst Ali (@ali_charts), the TD Sequential indicator has printed a sell signal on the Cardano 3-day price chart. As Ali explains, “It’s important to note that the last two times this indicator signaled bearish, ADA experienced a price correction!
The TD Sequential is a technical analysis indicator that attempts to identify exhausted trends and reversal points. So based on past performance, this fresh sell signal likely means traders should prepare for more downward price action for Cardano in the short term.
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Show more +Of course, indicators cannot perfectly predict the future. However, given Cardano’s multi-day losing streak and the indicator’s historical accuracy, the odds seem to favor a continuation of the price correction in the near term. Traders may want to adjust stop losses or avoid opening new long positions until an uptrend resumes.
In summary, Cardano is flashing warning signs of further losses ahead. The cryptocurrency has already posted three straight daily declines, and a key indicator called the TD Sequential is now pointing to a sellers’ market as well. Traders will want to keep a close eye on the charts in the coming days and exercise caution until bullish momentum returns.
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