- Cardano (ADA) faces a potential 18% drop to $0.54 after failing to break key resistance, according to analyst Ali Martinez.
- However, recent whale accumulation and a near-oversold RSI suggest a possible bullish reversal ahead.
Cardano’s native token ADA finds itself under pressure, with technical indicators pointing toward a possible near-term decline. From its December 2024 high of over $1.30, the cryptocurrency has shed about 45%, currently trading around $0.66. According to market analyst Ali Martinez, this downtrend could deepen, pushing ADA’s value down to as low as $0.54—a potential 18% drop.
Martinez highlighted that ADA recently failed to break out above a key resistance level, reinforcing its position within a descending price channel that’s held for six months. The analyst believes continued bearish pressure could drive the asset further down, especially after its latest rejection at the $0.74 threshold.
Also read: Ethereum (ETH) Price Prediction for May 7: Can Bulls Maintain Support at $1,800?
This isn’t the first time Martinez has flagged such concerns. Last week, he speculated that ADA might rally toward $0.88—but only if it could convincingly breach $0.74. That breakout never materialized, leaving bears in control for now.
Yet, amid the gloom, a counter-narrative has emerged. On-chain data reveals that whales—large-scale investors—accumulated over 410 million ADA in April, worth roughly $270 million at current prices. This renewed buying interest diverges sharply from the widespread selling seen in February and March, and it could signal building optimism.
Large wallet activity often sets the tone for the broader market. When whales buy, smaller investors tend to follow, injecting fresh liquidity and enthusiasm into the ecosystem.
Adding to this cautious optimism is Cardano’s Relative Strength Index (RSI), which currently sits just above 30. This level is near the traditional oversold zone, suggesting that ADA may be due for a bullish reversal if demand picks up.
In short, ADA teeters between a sharp decline and a potential comeback. While technical patterns suggest more downside risk in the immediate term, strong whale activity and improving momentum indicators hint that the bulls may not be out of the game just yet.