Cardano’s ADA is under pressure, having lost nearly 50% of its value from a peak late last year, and one analyst thinks the worst may not be over.
After peaking near $1.30 in December 2024, the token has shed nearly half its value, now trading around $0.65, according to CoinGecko data.
The decline hasn’t been a straight drop, but a series of lower highs and failed breakouts. Technical analyst Ali Martinez believes that the pattern could lead to further losses.
#Cardano $ADA was rejected at the top of its descending channel, potentially setting up a move toward $0.63, or even $0.54 if pressure persists. pic.twitter.com/esZYWPpZbM
— Ali (@ali_charts) May 6, 2025
In a post on X, Martinez pointed to ADA’s repeated inability to escape a descending channel that has constrained its price for more than six months.
In late April, ADA again bounced off the upper edge of that range and turned lower. Unless it breaks out, he warns the token could fall to $0.63—or as low as $0.54 if selling pressure intensifies.
The bearish case hinges on price action, not fundamentals, given that Cardano’s development team continues to push upgrades, and its community remains active. On the ETF front, the odds are rising.
As CryptoMode reported, analysts are assigning a 75% chance that the Securities and Exchange Commission (SEC) approves an ADA spot ETF later this year. Similarly, we’re seeing a lot more altcoin-based ETFs, including for popular currencies like Binance Coin (BNB), Sui Network (SUI), and of course, Ripple’s XRP.
ADA Whales Accumulate
Still, some signs suggest the pullback might be near its limit.
Recently, the analyst also highlighted a bullish pattern for Cardano, and if the asset manages to break above the $0.74 resistance zone, it could go above the $0.88 level and above.
Retail traders also closely follow the coin’s RSI, which has climbed above 58, suggesting underlying strength. However, traders should remain cautious, as anything can happen in the crypto world.
Others remain bullish, with Cardano’s founder recently predicting the price of ADA will reach $10.
Read more: Crypto Market Plunges 3% While Bitcoin Fails to Reclaim $100K
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
