Cardano’s ADA has been on a substantial downfall lately, with its price trading far below the local tops witnessed during the summer. In the following lines, we will touch upon three important factors that may give investors a clue as to what’s coming next.
The Bullish Elements
As of this writing, ADA is worth around $0.62 (per CoinGecko’s data), or a 24% decline on a weekly scale. Its market capitalization has plunged to roughly $22.5 billion, meaning it is now the 11th-biggest cryptocurrency.
ADA’s Relative Strength Index (RSI), though, indicates a recovery might be knocking on the door. The technical analysis tool measures the speed and magnitude of the latest price changes to estimate whether the token is overbought or oversold.
It ranges from 0 to 100, with ratios around and below 30 indicating that the valuation has plummeted too rapidly in a short period, potentially signaling a resurgence. Conversely, readings above 70 are interpreted as bearish territory. Recently, ADA’s RSI dropped to almost 30.
The second positive sign is the asset’s performance by that time of the year. X user Sssebi reminded that ADA’s pump in 2024 started in November, suggesting that if history repeats itself, the asset might hit a new all-time high before the end of 2025.
Last year the pump started in November
If $ADA gets another pump like that, there’s a chance it reaches a new ATH this year. pic.twitter.com/wvfjleddnE
— Sssebi
(@Av_Sebastian) October 17, 2025
Something for the Bears
However, some factors hint that the pullback could intensify in the short term. Earlier this week, X user Ali Martinez revealed that large investors (those holding between 100 million and 1 billion ADA) have offloaded 350 million tokens in the span of just seven days.
These whales now control less than 4 billion assets, or around 10% of the circulating supply. Their selling efforts might spread panic across the Cardano community and cause other smaller players to exit the ecosystem as well.
In addition, these actions increase the amount of ADA tokens available on the market, and basic principles of the economy dictate that the price should head south in the event of non-increasing demand.
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