“If Bitcoin keeps dropping we may see ADA do the same as well,” one analyst forecasted.
Cardano’s native cryptocurrency is among the many altcoins posting serious price declines over the past week.
Some market observers believe the asset could still see another pullback in the near term, arguing that a final dip may be necessary before it builds enough momentum for a decisive rebound.
How Much Lower?
ADA has slipped by nearly 10% over the last seven days, currently trading at roughly $0.25. Its market capitalization now stands at just over $9 billion, making the asset the 16th-largest cryptocurrency. Recall that earlier this month, it held the 14th position, but it has since been overtaken by LEO Token (LEO) and Zcash (ZEC), whose valuations remained relatively stable amid the recent market volatility.
Several analysts expect Cardano’s token to tumble further. X user Sssebi, who is usually quite bullish, predicted that ADA could continue to drop if Bitcoin (BTC) does the same.
“Considering that ADA got rejected exactly at the upper trendline of the descending channel, we can assume that it will also retest the bottom of the channel around $0.22,” they stated.
At the same time, the analyst suggested this could be “the last dip before pump.”
Alpha Crypto Signal also observed ADA’s price performance and argued that the recent rejection at the neckline indicates that sellers remain in charge. According to the analysis, losing the support region at around $0.25 could open the door for “another leg down with increased bearish momentum.” On the other hand, reclaiming this zone could invalidate the pattern and favor the bulls.
The Bullish Signals
Not long ago, the popular analyst Ali Martinez emphasized the importance of the $0.25 support zone for ADA, noting that the token posted an 88% rally after maintaining that level at the start of 2023. He also referenced September that year, when the price once again held the same support before exploding by 243%.
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Certain factors, such as the whales’ activity and the amount of tokens stored on exchanges, are worth observing as well. The analytics platform Santiment recently revealed that wallets holding at least one million ADA have increased their total holdings to 25.09 billion coins, representing over 67% of the circulating supply.
This development highlights the strong conviction within this cohort of investors, raising the question of whether they know something others don’t. In any case, their actions could encourage smaller players to follow suit and distribute fresh capital into the ecosystem.
Moving on to exchange netflows, where over the past several days, outflows have consistently surpassed inflows. This signals that investors have abandoned centralized platforms in favor of self-custody methods, thereby reducing immediate selling pressure.
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