\n\t\t\t\t\t\t\t\t\t“Be highly cautious if trading this bounce, and watch the $0.176 level closely for signs of rejection,” Martinez warned.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The prolonged bear market has been brutal for countless altcoins, with Cardano\u2019s ADA being particularly affected. Several hours ago, it dropped below $0.14 for the first time since late 2020, and it currently trades at around $0.147. Meanwhile, ADA\u2019s market capitalization fell to approximately $5.5 billion, meaning the token is no longer among the 20 largest cryptocurrencies.<\/p>\n
According to certain indicators, a rebound could be on the horizon, but a popular analyst thinks the asset is not completely out of the woods yet.<\/p>\n
\u2018Bull Trap?\u2019<\/h2>\n
In addition to ADA\u2019s price decline, the community had to endure the major exploit of the Cardano ecosystem project SecondFi, in which attackers drained<\/a> over $20 million.<\/p>\n Despite the breach, renowned analyst Ali Martinez revealed<\/a> that the TD Sequential indicator has flashed a buy signal. He claimed this development could result in an immediate relief rally to as high as $0.176, which can stop there and instead be followed by another correction.<\/p>\n \u201cWhile this indicator signals a near-term bounce, the broader market structure suggests caution. This localized push may act as a trap to lure in buyers before hitting immediate resistance and continuing lower,\u201d Martinez warned.<\/p>\n<\/blockquote>\n Earlier this month, he opined<\/a> that ADA has been forming a bearish flag since the beginning of June and has started breaking from the structure. In his view, this has increased the likelihood of a slump towards $0.13.<\/p>\n Another analyst who touched upon the matter was BillifyX. They noted<\/a> that ADA has lost its major support zone at around $0.148-$0.15, adding that if bulls can\u2019t reclaim that area, the asset could continue bleeding. \u201cBut if they do, this breakdown could turn into a trap,\u201d they added.<\/p>\n For their part, X user Sssebi (who is usually quite bullish on ADA) suggested<\/a> that the asset\u2019s cycle bottom could be around $0.12.<\/p>\n Despite ADA\u2019s poor performance and the carnage in the broader crypto market, some technical indicators, including the asset\u2019s Relative Strength Index (RSI), hint at an impending resurgence. Its ratio has slipped under 30, meaning the coin has entered oversold territory and could be due for a recovery. The index ranges from 0 to 100, with values above 70 interpreted as a warning of an incoming price decline.<\/p>\n ADA\u2019s exchange netflow points in the same direction. Over the past weeks, investors have shifted from centralized platforms toward self-custody methods, thereby reducing immediate selling pressure.<\/p>\n \u00a0<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n\n
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The Optimistic Scenario<\/h2>\n
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