Cardano price forecast: Will ADA surge following TD buy signal?

May 21, 2026

Cardano’s price prediction has recently turned cautiously bullish following the appearance of a TD Sequential buy signal at around $0.25. However, ADA still needs to protect key support levels to form a stronger rebound in the market.

Currently, Cardano is trading around $0.2495, with a 24-hour trading range between $0.247674 and $0.252127. Over the past week, the token has seen a slight increase in value, but it remains down by approximately 5.8%. When looking at the longer-term data, Cardano has experienced a 67.4% decline over the past year and a 59.5% drop over the last 200 days. With a market capitalization of nearly $9.22 billion, ADA currently ranks 16th by market value.

Traders are closely monitoring the $0.246 level as a critical support zone. Sustained closings above this level will keep the short-term bullish outlook intact. However, if ADA breaks below this level, the rebound momentum could weaken, drawing attention back to lower support levels.

Market analyst Ali Martinez noted that Cardano “could be primed for a rebound” following the recent TD Sequential buy signal. This indicator is used to identify potential trend exhaustion, suggesting that selling pressure may be easing after Cardano’s recent decline. Martinez suggests that the latest buy signal indicates the formation of a local bottom, with an initial upside target near $0.255 and potential further gains towards $0.262.

The short-term moving averages for Cardano coincide with these price targets, with ADA currently trading around $0.2503 on the daily chart. The 9-day and 21-day moving averages are at $0.2559 and $0.2605, respectively, indicating that the prices close to these levels represent near-term resistance. A close above the 9-day moving average could signal a shift in buyer control, while surpassing the 21-day moving average would further support the bullish case.

However, caution is advised as ADA remains below both short-term moving averages, signaling that sellers still hold sway in the market. The Relative Strength Index (RSI) is at 43.87, below the neutral level of 50, indicating weak momentum but not yet reaching oversold conditions. Moreover, the RSI has dropped below its signal line at 53.49, pointing to a cooling in early-May’s price bounce.

Market volume also needs to improve for sustained price increases. Daily chart volume remains moderate at around 35.84 million $ADA, suggesting that without stronger buying interest, overcoming resistance levels at $0.255 and $0.262 may be challenging. Derivatives data reflects a cautious sentiment, with reduced total volume and open interest, implying that traders may be closing positions rather than initiating new risks in the market.

In conclusion, while the short-term technical signals for Cardano are showing signs of improvement, there are broader concerns to consider. Governance issues, low RSI levels, falling open interest, and resistance from moving averages all indicate a mixed backdrop for ADA’s price outlook. For now, ADA’s ability to maintain support at $0.246, reclaim $0.255, and surpass $0.262 will determine the strength of its rebound potential and possible higher resistance levels in the market.