Cardano (ADA) at a Crossroads: 25% Pump or 60% Crash Comes Next?

Cardano’s native cryptocurrency has plunged by 7% over the past week and is among the worst performers during this period.

According to one popular analyst, the current level is crucial since it could be followed by a massive rally or a new, much more painful correction.

What Comes Next?

Ali Martinez, a renowned crypto commentator who often discusses ADA, argued that the asset’s valuation has returned to a “make-or-break” level at $0.243. He noted that this zone has historically been “the ultimate pivot point” and has acted as a “launchpad, triggering significant rebounds.”

The analyst believes that if the bulls defend this important floor, they can open the door to a potential rally to as high as $0.30. On the contrary, losing this mark on a daily close would result in a major structural failure and could lead to a collapse to as low as $0.10.

Another market observer who recently gave their two cents on ADA is Celal Kucuker. The X user claimed that the mid to long-term chart looks “absolutely perfect,” setting a bull run target of $6.30.

The whales’ recent activity supports the optimistic scenario. As CryptoPotato reported, the number of wallets holding more than 10 million ADA tokens has risen to a four-month high of 424.

Prior to that, large investors scooped up 220 million coins in just one week. The development suggests these market participants might be getting ready for the next leg up, as it is a common theory that they may have inside information about upcoming events that could positively impact the price. Moreover, their actions can spark enthusiasm across the community and prompt smaller players to hop on the bandwagon as well.

Observing These Indicators

ADA’s Relative Strength Index (RSI) also reinforces the bullish outlook. The technical analysis tool has fallen to around 30 on a weekly scale, indicating that the asset is oversold and could be on the verge of a resurgence. Conversely, ratios above 70 are seen as bearish territory.