Cardano Price Prediction: Analyst Highlights 3 Bearish Indicators That Could Push ADA Below $0.15

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Crypto analyst Ali Martinez has identified three warning signals suggesting that Cardano (ADA) could face further weakness following its recent price rally.

The analysis comes less than two weeks after Cardano staged a strong rally and climbed above $0.21. However, the token has since entered a modest correction, falling below $0.19.

Martinez Identifies Three Cardano Warning Signals

Martinez highlighted three key indicators that could signal further downside for ADA. According to his analysis, the signals could drive ADA towards $0.14 if the bearish setup continues to develop.

Cardano Whale Holdings Decline

The first warning signal involves the recent decline of whale holdings. Martinez noted that the number of wallets holding between 1 million and 10 million ADA fell from 2,370 on August 2 to 2,340 at the time of his analysis.

According to him, the decline suggests that some large holders may be taking profits or redistributing their holdings following ADA’s recent price increase to $0.2107. 

ADA MVRV Ratio Forms a Death Cross

The second warning signal comes from Cardano’s MVRV ratio. Martinez stated that recent selling pressure from whales has caused ADA’s MVRV ratio to form a death cross with its 7-day simple moving average (SMA).

He explained that this development points to weakening momentum and increases the risk of a deeper correction. 

TD Sequential Flashes a Sell Signal

The third warning signal comes from the TD Sequential indicator on Cardano’s daily chart.

Martinez said the indicator has flashed a sell signal, which could precede a pullback lasting between one and four candlesticks. Alternatively, he suggested that the signal could mark the beginning of a new bearish countdown. 

ADA Could Fall Toward $0.14? 

Notably, Martinez warned that if all three signals are confirmed, ADA could decline toward $0.170. This level represents the mid-range support of Cardano’s current trading channel. Furthermore, a breakdown below $0.170 could expose ADA to the channel’s lower boundary near $0.144, according to the analyst.

At press time, ADA was trading at $0.1862 and ranked as the 14th-largest cryptocurrency by market cap. The token has declined 2.18% over the previous week and 1.06% over the past 24 hours. Nonetheless, ADA remains up 18.41% over the past 30 days.

Meanwhile, Cardano ranks as the seventh token with the most bullish community sentiment, recording 72.9% bullish votes. The token ranked ahead of XRP and Shiba Inu on the metric. Cardano also topped the daily bullish trending token ranking, with a trending score of 10.4%, outperforming popular assets like Solana, Ethereum, Shiba Inu, and Kaspa.