Cardano's ADA has received a new Tom DeMark Sequential buy signal while the token continues to hold above its key moving averages. Analyst Ali Charts reported the signal on ADA's daily chart. Three previous setups — on June 25, July 15 and August 18 — preceded rebounds of 44.5%, 11.5% and 50.9%, respectively.

The Tom DeMark (TD) Sequential indicator, developed by veteran market technician Tom DeMark, is a countertrend tool designed to identify potential exhaustion points in a price move; a buy setup completes after a streak of consecutive daily closes, signaling that downside momentum may be fading. As with any technical indicator, its readings are probabilistic references rather than guarantees of future performance.

The latest signal follows three recent buy readings that marked lows before strong price moves, with the largest rebound reaching 50.9%.

Analyst Points to Another ADA Rebound

Ali Charts said the newest Sequential reading could indicate another rebound for ADA. The indicator has previously marked three recent lows ahead of strong price moves: the June 25 signal came before a 44.5% rally, according to the analyst, the July 15 signal preceded an 11.5% rise, and the August 18 signal came before a 50.9% increase.

The latest signal, however, arrives after ADA has already recovered from a deeper decline, leaving traders watching whether the token can maintain its recent market structure. Context matters here: the earlier signals printed near multi-month lows, whereas the current one appears after a meaningful recovery, meaning the setup occurs under different market conditions than the prior three.

ADA Moves Above Key Moving Averages

ADA traded near $0.27 to $0.28 in March before entering a prolonged decline. The selloff intensified in June, sending the token toward $0.158 to $0.16, and the decline later stabilized between $0.14 and $0.16 in late June.

From July onward, ADA formed higher lows and broke above $0.178. In August, the token climbed toward $0.24 before profit-taking pushed it back toward $0.20.

ADA now trades around $0.208, with the 50-day moving average standing near $0.203 and the 200-day moving average around $0.196. ADA remains above both averages, and the 50-day average has moved above the 200-day average — a configuration traders commonly refer to as a golden cross, which many treat as evidence of a medium-term shift in trend. This places the $0.196-$0.203 zone as key support.

Resistance Levels Keep ADA Traders Focused

Above the current price, $0.217 represents the first resistance level, followed by $0.236 to $0.240 — a zone that previously faced strong rejection during August's rally. A break above $0.24 could expose $0.256 and later $0.275. Conversely, losing the $0.196 to $0.203 support area could send ADA toward $0.178.

Trading volume also expanded during August's advance before later moderating — a pattern traders often watch, since fading volume after a rally can signal reduced participation behind the move.

The new Sequential reading adds another technical reference point as ADA trades near $0.208. The RSI currently sits at 66.60, with its average at 65.95, while the MACD line remains above its signal line — momentum readings that sit near the upper end of their typical ranges, leaving traders focused on whether ADA can clear $0.217 and then the heavily contested $0.24 resistance.