ADA Price Rally Hits Roadblock as Analyst Warns of 25% Correction

Cardano's native token ADA has been on a tear in recent months, with its price surging by 15% within the last month. However, popular analyst Ali Martinez believes that ADA may be due for a significant correction.

Martinez pointed out that the number of large holders, known as whales, holding between 1 million and 10 million ADA has decreased from 2,370 to 2,340. This could indicate that some investors are taking profits or redistributing their holdings after the recent price increase.

The analyst also highlighted two other concerning signals: a 'death cross' in Cardano's MVRC ratio and its 7-day simple moving average, which suggests weakening momentum; and a sell signal on ADA's daily chart from the TD Sequential indicator.

If these warning signs are confirmed, Martinez predicts that ADA could decline to $0.17, with a further breakdown exposing the lower boundary near $0.144.