Cardano gained 23% over the past month and trades just under $0.25, but analyst Ali Martinez points to cooling futures demand, heavy whale selling, and a bearish technical signal that could trigger a short-term pullback. He puts $0.24 as the key support level to watch heading into October.
Cardano's ADA climbed 23% over the past month and now trades just under $0.25. Yet analyst Ali Martinez has flagged several factors that could trigger a short-term pullback even as many expect October to bring further gains.
Futures Demand Cools
Martinez first pointed to the futures market, where open interest declined 9% over the past week, falling from almost $2 billion to about $1.81 billion. According to Martinez: "This suggests traders are reducing leveraged exposure."
Martinez then turned his attention to on-chain activity, where a separate signal has emerged.
Whale Selling and a Bearish Chart Signal
Large investors have offloaded 90 million ADA tokens worth around $22.5 million since September 20, adding to recent selling pressure that should serve as a clear bearish signal.
He also cited the Tom DeMark Sequential indicator, which flashed a sell signal on ADA's daily chart on September 26. The token's valuation has since plunged 10%, and Martinez hinted the correction may not be over.
Key Levels and October Seasonality
Martinez identified $0.24 as the key mid-range support for ADA. Losing that level, he said, could open the door to a further drop toward $0.21. Holding it, however, could present the next buying opportunity, with a target near the channel top at $0.28.
Seasonality adds another layer of caution. Unlike bitcoin, which often thrives in October, Cardano's token has historically underperformed during the month, finishing in the red six times over the past nine years.
Source: CryptoPotato
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