ADA Rally Faces Threat of 25% Decline
Cardano's native token ADA has seen a significant price increase in recent months, rising by 15% over the past month. However, analyst Ali Martinez believes that this upward momentum may be coming to an end.
Martinez points out that the number of whales holding between 1 million and 10 million ADA has decreased from 2,370 to 2,340, suggesting that some large holders are taking profits or redistributing their coins after the recent price increase.
He also notes the formation of a 'death cross' between Cardano's MVRC ratio and its 7-day simple moving average, which indicates weakening momentum and raises the risk of a deeper correction. Additionally, the TD Sequential indicator has printed a sell signal on ADA's daily chart.
Martinez warns that if these warning signs are confirmed, ADA could decline towards $0.17, with a further breakdown exposing the lower boundary near $0.144.