ADA’s Rally Hits a Wall: Analyst Warns a 25% Drop Could Be Next

Cardano’s native token is among the top-performing cryptocurrencies on a monthly scale, with its price rallying by 15% within that period.

However, the bulls seem to have lost momentum, while popular analyst Ali Martinez outlined some important factors that could trigger a major short-term decline.

Going Down Again?

ADA started August on the right foot following the return of the large investors who scooped up more than 240 million coins in less than a week. Its price eventually pumped to almost $0.21 (the highest mark since early June) before retracing to the current $0.187 (per CoinGecko).

Meanwhile, Martinez believes a much more substantial plunge could be on the way. The analyst revealed that the number of whales holding between 1 million and 10 million ADA has fallen from 2,370 to 2,340, saying:

“This suggests some large holders may be taking profits or redistributing after the recent price increase.”

His second concerning signal is the formation of a death cross between Cardano’s MVRC ratio and its 7-day simple moving average. He claimed that the shift points to weakening momentum and raises the risk of a deeper correction. Last but not least, Martinez paid attention to ADA’s TD Sequential indicator, which has printed a sell signal on the asset’s daily chart.

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