Cardano (ADA) Could See 20% Drop Before Next Rally, Warns Expert

Trading expert Ali Martinez predicts a 20% correction for Cardano (ADA), potentially dropping its price to $0.88. Despite short-term bearish patterns, long-term forecasts remain bullish, with a potential rally to $6 in 2025.

Altcoin season is in full swing, with smaller cryptocurrencies like Cardano (ADA) experiencing significant gains even as Bitcoin (BTC) retreats from its recent highs. While BTC struggles to surpass the $100,000 mark, ADA has surged by over 207% in the past 30 days, bringing its year-to-date (YTD) gains to 84.74%. At press time, ADA trades at $1.10, reclaiming its position among the top 10 cryptocurrencies by market cap.

However, technical analyst Ali Martinez has issued a cautionary note, suggesting that ADA could face a steep correction of up to 20% in the near term, dropping its price to $0.88.

The Bearish Rising Wedge Pattern

Martinez highlighted that ADA has formed a rising wedge pattern, a bearish reversal indicator, starting on November 22. This pattern suggests that the current uptrend may be nearing its end.

In his December 2 analysis on X, Martinez noted that ADA has struggled to break through the wedge’s upper trend line. A close below $1.10 could signal the start of a bearish trend. Should the price drop below $1.03, a breakout to $0.88 would likely follow, marking a 20% decline from current levels.

Adding weight to this prediction, the TD Sequential indicator—used to spot price reversals—has also flashed a sell signal on the 3-day chart.

Long-Term Optimism for ADA

Despite this potential correction, Martinez’s long-term outlook for ADA remains bullish. He has previously forecasted that ADA could reach a new all-time high of $6 between July and September 2025, representing a 445% rally from its current price.

This optimistic outlook is supported by ADA’s historical price cycles and the growing interest from large-scale investors. Whales have been actively accumulating ADA, signaling confidence in its long-term potential.

Opportunities in a Correction

If Martinez’s predictions come to pass, the anticipated correction could provide an excellent entry point for investors looking to capitalize on ADA’s future growth. With a strong foundation in its blockchain capabilities and ongoing development, Cardano remains a promising asset in the cryptocurrency market.

As always, investors should exercise caution and conduct thorough research before making decisions, particularly in a volatile market.

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