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In a recent post on X, formerly Twitter, leading cryptocurrency personality Ali Charts highlighted key warning signs on Cardano’s ADA technical chart. Notably, the number of whales holding between 1 million and 10 million ADA has declined significantly from 2,370 to 2,340. Per the analyst, the trend suggests that some large holders may be taking profits or redistributing after the recent price upsurge.
As such, the added selling pressure has triggered a death cross between Cardano’s MVRV ratio and its 7-day simple moving average. This further points to the weakening momentum and an elevated risk of a deeper correction.
From a technical standpoint, the Tom DeMark Sequential, a technical analysis indicator developed by Tom DeMark, designed to identify potential trend exhaustion and possible reversal points by objectively counting price bars, has also flashed a sell signal on the daily chart, which could indicate a 1–4 candlestick pullback or the beginning of a new bearish countdown.
The analyst asserts that the aforementioned warning signs, if observed, could pose a significant threat to ADA’s near-term price performance.
Ali Charts explains that if these warning signs are confirmed, ADA could decline to the channel’s mid-range support near $0.170, with a further breakdown potentially exposing the lower boundary around $0.144.
 
Market players have shared mixed feelings following the analyst’s recent revelation. One commenter took the analysis as a sign to continue to HODL while watching the market’s next move.
Another analyst interpreted the warning signs as proof that an entry point is opening for market players to increase their ADA holdings.
Meanwhile, at the time of this report, ADA, the 15th most valuable cryptocurrency by market cap, is down 1.63% over the last 24 hours and 11.34% over the last 7 days. The asset trades at a press-time price of $0.1741.