Cardano could be gearing up for a massive price move, as recent analytical exposition highlights a multi-month support breach.
Cardano (ADA) has joined the broader market correction, fueled by heightened whale selloffs and macroeconomic uncertainties. Despite a decent 2.26% bounce today to trade at $0.492, ADA has corrected 15.8% and 21.6% over the past week and month, respectively.
Major Cardano Move Incoming
Meanwhile, prominent market chartist Ali Martinez has spotlighted a crucial development on the 4-hour chart, one that could lead to a significant price shift. He noted that ADA has just broken below a key demand zone that has buffered bearish momentum since 2024.
For perspective, bulls have defended the support around $0.512 since ADA reclaimed and retested the zone in early November 2024. Efforts to break below with lows of $0.512 in February, April, and June have all sparked a significant rebound from the area to higher prices.
Nonetheless, recent bearish actions saw the support fold. Cardano dropped to a low of $0.491 on November 14, and although it reacted slightly the next day, the predominant price weakness led to a further drop to a low of $0.474 on Sunday.
On this note, Martinez predicted that a “big move” is coming next for Cardano. Such support breaches usually catalyze further downside, suggesting that ADA could see new lows if bearish momentum persists. However, the coin could rally like it did from the $0.512 support if it reclaims and holds the critical area.
Whale Sell-Off Adds to Bearish Pressure
Meanwhile, ADA whales have been busy lately, and they are not buying the dip. A parallel tweet from Martinez shows that they have sold 440 million ADA in one month, adding fuel to the bearish flames.
The sell-off specifically occurred among addresses holding between 100 million and 1 billion ADA tokens. These prominent holders have consistently dumped their holdings since early October, chopping their stash down to 3.83 billion tokens.
However, investors remain optimistic about a bullish development for Cardano. A reaction suggested that these sales were a wrong move, as they may end up buying back at higher prices. Another user shared a similar opinion, tapping the imminent Cardano ETFs to spur a comeback.
Analysts are also sharing the same view. A TradingView analysis from AltcoinPioneers has predicted a 25% rebound to retest crucial resistance levels. This builds on his earlier commentary, in which he insisted that a bullish reversal is on course for the 10th-largest cryptocurrency by market cap.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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