Cardano’s (ADA’s) short-term momentum looks shaky. The Cardano price has corrected by more than 5% in the past 24 hours, breaking down from a bearish chart pattern.
Despite this drop, the bigger picture still shows strength — ADA remains up 31% over the past three months. But the recent technical and on-chain signals suggest that the current phase may bring more downside before another push higher.
Whale Outflows Align With Looming Double Death Crossovers
On-chain data shows a quiet shift in whale behavior. Wallets holding between 10 million and 100 million ADA have reduced their holdings from 13.09 billion to 13.07 billion tokens since Oct 6. That’s a net drop of roughly 20 million ADA, worth about $16 million at current prices.
Even though the change seems small, it often signals growing caution among larger investors — especially when paired with technical weakness.
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On the 4-hour chart, ADA’s moving averages are flashing early warning signs. The Exponential Moving Average (EMA) is a tool that smooths price data to highlight trend direction. The shorter-term 20-period EMA (red line) has now started sliding below both the 50-period (orange line) and 200-period EMAs (deep blue line), forming what traders call a “Death Crossover.”
This pattern often signals that sellers are gaining control as short-term momentum fades. In ADA’s case, two such crossovers — or a double death crossover — are forming, showing mounting downside pressure.
When this type of bearish crossover aligns with whale outflows, it usually suggests that large investors are taking a defensive stance ahead of possible volatility.
Together, the whale trimming and bearish EMA setup strengthen the case for a short-term correction, even though the broader Cardano (ADA) price trend still looks positive.
Bearish Pattern Hints at $0.76 Cardano Price Target
The 4-hour chart also shows ADA trading inside a descending channel, a pattern marked by lower highs and lower lows. This pattern often forms during correction phases, indicating that sellers are still active.
Based on the measured move from the channel’s breakdown point, the Cardano price target sits near $0.76, which acts as a major support zone. That would mean another 6% correction from the current ADA price levels. However, before falling that deep, the ADA price might find support at $0.78, provided whales get back to accumulating.
However, if the Cardano price manages a strong 4-hour candle close above $0.85, followed by a move past $0.88, the bearish setup would be invalidated — potentially marking the end of the correction phase.
Until that happens, traders may see ADA’s dip toward $0.76 as a temporary cooldown rather than a full reversal.
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