- Cardano may drop to $0.54 after failing resistance, as analyst Ali Martinez warns of continued bearish pressure.
- Whale accumulation and near-oversold RSI levels suggest a possible rebound, offering hope despite the recent downtrend.
Cardano faces pressure as its price continues to slide from its December 2024 highs, sparking concerns of a deeper correction. According to analyst Ali Martinez, ADA could see drop of 18% if it fails to gain bullish momentum soon.
ADA Faces Continued Downward Pressure
After peaking above $1.30 in late 2024, ADA has experienced a steady decline, with its current price hovering around $0.66 — down approximately 45% from its recent top. Martinez warns that Cardano was recently rejected at the upper boundary of a descending channel pattern, a trend that has dominated its chart for the past six months.
If selling pressure persists, Martinez predicts ADA could fall to $0.63 or even $0.54 in the near term. This bearish scenario is reinforced by the token’s inability to break the $0.74 resistance level — a key threshold that, if breached, might have pushed the price toward $0.88.
ALSO READ:Pi Network Faces Backlash After False BNP Paribas Partnership Claim
Cardano Whales Accumulate Despite the Bearish Outlook
However, not all signs point to continued losses. Despite the downward trend, whale investors — those holding large quantities of ADA — have been quietly accumulating. In April alone, over 410 million ADA were purchased by these entities, translating to roughly $270 million at current prices.
This pattern of accumulation contrasts sharply with the heavy selling observed earlier in the year. It may signal that large investors see long-term value at current price levels. Historically, whale behavior can precede major trend reversals, as retail traders often follow their lead.
RSI Suggests a Potential Reversal
Further optimism comes from ADA’s Relative Strength Index (RSI), which currently hovers just above oversold territory. An RSI below 30 is typically viewed as a bullish signal, suggesting the asset may be undervalued and primed for a rebound.
While short-term risks remain — including a possible dip to $0.54 — the recent whale activity and favorable RSI readings suggest that a turnaround could be brewing. Traders should watch for signs of momentum, as ADA’s next move could shape its path in the coming weeks.
MIGHT ALSO LIKE:Why Ripple is Eyeing USDC Issuer Circle: What’s at Stake for XRP
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article .We encourage readers to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
