Analyst Says Cardano (ADA) Could Be Due for Another Pullback. Here's why

Cardano (ADA) has been on a steady upward trend, recently reclaiming the $0.74 area after a series of strong sessions. However, a new development on the 4-hour chart has introduced a note of caution for traders closely monitoring the asset’s short-term trajectory.

Prominent crypto analyst Ali Martinez (@ali_charts) shared a chart on X showing that ADA may be approaching a local top. According to the chart, the TD Sequential indicator, commonly used to anticipate potential trend exhaustion, has now triggered a sell signal.

This signal appears at the ninth candle of the sequence, which is often interpreted as a point where bullish momentum could begin to stall.

Cardano $ADA could be due for another pullback as the TD Sequential flashed a sell signal on the 4-hour chart! pic.twitter.com/Qhk2lu89ON

— Ali (@ali_charts) August 4, 2025

TD Sequential Signal Appears After Sustained Rally

The indicator’s timing is notable, as it comes after a strong recovery from the recent downturn. ADA’s price has been climbing consistently, as illustrated by a succession of higher candles in the 4-hour time frame. The upward push brought the token close to the $0.7428 high, just before the most recent bearish candle marked the ninth bar in the sequence.

Martinez’s chart places the gray arrow above this ninth candle, confirming the presence of the TD Sequential signal. In technical analysis, this type of signal is not an automatic reversal cue but often precedes short-term pullbacks or consolidation phases.

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— TimesTabloid (@TimesTabloid1) June 15, 2025

Cardano’s TD Sequential Indicator showed a similar sell signal on the 4-hour chart in March, and this caused the asset to fall from over $0.7 to around $0.51 in under two weeks. The same indicator marked the beginning of the recent upward turn, and that bearish momentum appears to have reached its peak.

What’s Next for Cardano (ADA)?

At the time of the chart’s publication, ADA was trading around $0.7378. The appearance of a TD sell signal could prompt some caution among traders. However, some market participants are confident that ADA can keep climbing, as the recent whale buying spree has renewed the many investors that the asset can reach $1.

The broader structure remains intact for now, but with ADA approaching a zone that has previously acted as both support and resistance, the next few candles will be critical. Martinez recently highlighted ADA’s similarity to the 2021 bull run, which sent it to its all-time high of $3.1. If the asset can escape a bearish turn, it may target similar levels soon.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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