Amid Major Cardano Bull Run, Technical Indicators Signal Sell-off: Key Target to Watch for a Favorable Entry
As the Cardano (ADA) bull run gains momentum, analysts warn of a pullback as indicators flash a potential short-term correction. Cardano has experienced a steady rise in recent weeks, reaching the $1.10 mark after a 220% monthly surge. However, sustaining momentum at this level has proven difficult.Multiple attempts to break past $1.10 were met with rejection, indicating a formidable resistance zone. At press time, the crypto trades at $1.07, reflecting a modest 0.12% gain in the last 24 hours.Indicators Signal Potential Reversal for CardanoTechnical analysis signals a growing risk of a price correction for Cardano. The appearance of a TD Sequential sell signal on the 3-day chart hints at a possible trend reversal or pullback.According to analyst Ali Martinez on X, ADA proponents could target $0.88 if the correction occurs. This price point aligns with the Fibonacci 0.786 level, from which a major rebound could follow.Is Cardano Overbought Yet?Momentum indicators support concerns over a potential pullback. The Relative Strength Index (RSI), previously in overbought territory above 70, has begun to drop, signaling a weakening of bullish momentum.Although theres no clear bearish divergence yet, the RSI decline, coupled with a red candlestick, could signal the start of a reversal.
Text source: The Crypto Basic
