Cardano's Price Recovery Faces Key Test as Technical Indicators Flash Warning Signals
Cardano's (ADA) recent price recovery has caught the attention of traders and investors, but technical indicators are now flashing warning signals that may indicate a pullback is coming. The ADA price climbed from $0.14 to briefly approach $0.20 in recent weeks, but after the latest pullback, traders are questioning whether it has enough momentum to continue its upward move.
A gradual reduction in large ADA holders has been observed on-chain data. Between August 2 and now, the number of wallets holding between 1 million and 10 million ADA fell from 2,370 to 2,340, indicating that 30 whale addresses have moved out of this range. This decline could reflect profit-taking or redistribution among larger holders.
The technical setup is becoming more cautious as Cardano's MVRV ratio has crossed below its 7-day moving average and the Tom DeMark Sequential has printed a sell signal on the daily chart, indicating that the current advance may be entering a period of exhaustion. A confirmed MACD bearish crossover would strengthen the case for a short-term correction.
For now, traders should treat $0.17 as the key line separating a healthy pullback from a deeper bearish reversal. If ADA fails to reclaim the $0.20-$0.202 resistance zone, a break below $0.17 could weaken the ascending channel structure and expose $0.155 and $0.144.