ADA Triggers TD Sequential Buy Signal While Defending the $0.37 Critical Floor

fomo_fighter · 2026-01-05T13:41:17+00:00

Cardano (ADA) has triggered a TD Sequential buy signal, indicating potential price reversal from the $0.37 support level. Whale accumulation and optimistic trading behavior suggest a possible rally to $0.54, but a fall below $0.37 poses significant risks.

fomo_fighter

2026-01-05 13:41:17

Abstract generation in progress

Cardano (ADA) has flashed a TD Sequential buy signal, a technical pattern that often precedes significant price reversals after prolonged downtrends. Trading near the $0.37 support level as of mid-December 2025, the token is at a pivotal juncture. Analyst Ali Martinez highlighted that maintaining this support is essential for ADA to rally toward $0.54, representing a potential 46% upside from current levels.

The Technical Setup Behind the Reversal Signal

The TD Sequential indicator, developed by Tom DeMark, identifies exhaustion patterns in price action. When triggered at historically important support zones—as seen with ADA’s $0.37 floor—it can signal that selling pressure is losing momentum. This particular setup carries weight because $0.37 has proven resilient despite weeks of market headwinds, suggesting underlying demand is still present.

Whale Activity Speaks Volumes

Despite unfavorable market sentiment, large wallet holders have been quietly accumulating ADA positions. This divergence between whale behavior and general market pessimism often precedes price recovery. Derivatives data reinforces this bullish undertone, with long positions outnumbering shorts, indicating sophisticated traders are positioning for an upside move.

The Risk Below Support

While the technical setup looks constructive, ADA remains vulnerable. A breakdown below $0.37 could accelerate selling and push prices significantly lower, erasing the reversal narrative. Traders watching this level should treat it as make-or-break for the near-term recovery scenario.

The convergence of Ali Martinez’s technical observations, whale accumulation patterns, and the TD Sequential signal creates an intriguing setup for ADA. However, success hinges on holding that critical $0.37 support.

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