Cardano (ADA) is showing a warning sign after falling 18% over the past two weeks, making it the worst performer among 25 major cryptocurrencies. Crypto analyst Ali Martinez has flagged a bearish signal on the ADA chart, raising the risk of another drop toward $0.17.
However, ADA has repeatedly recovered after dipping below $0.21 since late August, making that level crucial for the next move.
ADA is currently trading near $0.224, up 2.8% in the past 24 hours as the broader crypto market shows a slight recovery. However, the token remains under pressure after its recent decline, while Bitcoin fell around 5% over the same two-week period.
Market volatility remains high, with ADA’s volatility exceeding 5.56% today. A total of 198 traders were liquidated, losing $620,320 combined.
Long traders accounted for 59% of the liquidations, worth $302,311, while short traders made up the remaining 41%, losing $318,007.
According to popular crypto analyst Ali Martinez, Cardano’s latest chart signal points to a possible price correction. The SuperTrend indicator has turned bearish, similar to a signal seen on May 22 that was followed by a 46% drop in ADA’s price.
Martinez also highlighted whale activity as another signal to watch. In the past, changes in holdings among investors with 100 million to 1 billion ADA have often lined up with major price moves.
However, their holdings have stayed mostly unchanged over the past 10 days, showing no clear shift toward buying or selling.
The next key level is $0.21, which marks the lower edge of Cardano’s rising price channel. A daily close below this level could confirm a breakdown and push ADA toward $0.17.
Until then, the bearish signal remains a warning, not confirmation of another major drop.
On the daily chart, $0.21 is the key support level to watch. It marks the lower edge of Cardano’s rising price channel and has held in recent weeks. Since late August, every dip below $0.21 has been followed by a recovery above it within a few days.
However, a daily close below $0.21 could confirm a breakdown and push ADA toward $0.17.
On the flip side, a breakout above this level would start the bullish rally towards the $0.28 level.
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