After a decent rally, it appears whales are looking to take profit.
According to tweets from prominent crypto analyst Ali Martinez, Cardano’s ADA has flashed a sell signal on the 4-hour and 1-hour price chart.
The analyst comes to this conclusion using the TD sequential indicator that traders can use to spot trend reversals. In Martinez’s analysis of the hourly chart, he implies that it is likely the result of profit-taking, tapping the $0.27 and $0.266 as potential targets of the downward price move.
— Ali (@ali_charts) January 7, 2023
It bears mentioning that the crypto asset has had an impressive start to the year. At press time, it is up 12.3% from its opening price on January 1. Santiment Feed has attributed the latest rally to renewed whale accumulation. Per the recent report, whales have added over 217 million ADA to their bags since January 1 after selling over 568 million coins in the last 2 months of 2022.
Notably, the asset looks poised to launch a bullish reversal. However, per a recent report, prominent analyst Duo Nine has warned that the asset needs to break the resistance at $0.30 before the latest rally can be seen as a bullish reversal. Otherwise, Duo Nine has warned that it could be a bull trap.
So far, the asset’s price remains below the resistance level mentioned above. At press time, it exchanges hands for 0.2768, up 1.97% in the last 24 hours.