The very beginning of 2024 was rocky for Cardano (ADA) as it, in the first two weeks of January, went through one significant rally and two major plunges. The ADA token has, however, started regaining momentum after January 20 and has spent much of February surging and gained 22.56% since January 23, going from $0.48 to $0.58.
Indeed, Cardano has – notwithstanding the turmoil of the first three weeks of January – started truly snowballing in recent months, as best exemplified by the rapidly accelerating growth of smart contracts on its blockchain.
In fact, after the number of smart contracts rose by 10,000 in 2023, Cardano added just as many in January and, in the first 10 days of February, it added an additional 5,000.
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ADA price chart
While the two drops from early and mid-January – which, admittedly, affected the entire crypto market – were significant enough to ensure Cardano is, in total, 6.49% down year-to-date, its recovery in the latest 30 days proved just as major.
Indeed, in the last month of trading, ADA rose an impressive 22.56%, and, at press time, Cardano price stands at $0.58.
Despite the seemingly strong uptrend in recent weeks, the 24 hours leading up to February 23 saw a drop for Cardano price, and ADA is 3.19% in the red in the time frame.
Additionally, according to one expert’s technical analysis (TA) of the token, it is bound for an even greater drop.
Cardano technical analysis sends a strong sell signal
On Friday, February 23, the prominent crypto analyst Ali Martinez took to X to warn that the TD Sequential technical indicator, when applied to Cardano’s 3-day chart, signals that ADA is bound for a major sell-off and a significant price correction..
“The TD Sequential indicator shows a sell signal on the #Cardano 3-day chart. It’s important to note that the last two times this indicator signaled bearish, $ADA experienced a price correction!”
TD Sequential is a pattern-seeking technical analysis tool developed by Tom DeMark in 1994 that seeks to identify whether an exciting trend shall continue or experience a reversal based on an asset’s past performance.
Still, the true test of whether Cardano will indeed enter a correction or if it has gained enough momentum to say its upward course will become evident only as weekend trading progresses.
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