The price of Cardano (ADA) has the potential to fall deeper when Death Crossovers appear.

The short term momentum of Cardano (ADA) is showing signs of weakening. In the past 24 hours, the price of Cardano has fallen by more than 5%, breaking down a bearish chart pattern.

Despite this decline, the overall picture still shows significant strength — ADA has increased by 31% over the past three months. However, recent technical signals and on-chain data suggest that the current phase may witness further bearishness before the next bullish wave.

Whale money flow indicates preparation for impending Death Crossovers

On-chain data indicates a cautious shift in the behavior of large investors. Wallets holding between 10 million ADA and 100 million ADA have reduced their holdings from 13.09 billion ADA to 13.07 billion ADA since October 6, corresponding to a net decrease of approximately 20 million ADA, worth about 16 million dollars at current prices.

The outflow of Cardano whales | Source: SantimentAlthough this change seems small, it often reflects increased caution among large investors, especially when combined with weak technical factors.

On the 4-hour chart, the moving averages of ADA are issuing early warning signals. The (EMA) is a tool that helps smooth price data to highlight trends. Currently, the 20-period EMA (red line) has started to slide below both the 50-period EMA (orange line) and the 200-period EMA (dark blue line), forming a pattern that traders call “Death Crossover.”

Death Crossovers of ADA are about to appear | Source: TradingViewThis pattern typically signals that sellers are gradually gaining dominance as short term momentum weakens. In the case of ADA, two such crossovers — also known as double Death Crossovers — are forming, indicating increasing bearish pressure.

When these bearish Death Crossovers occur alongside whale money flows, it often indicates that large investors are tending to hedge against the upcoming volatility.

The reduction of whales combined with the bearish EMA setup reinforces the likelihood of a short term correction, although the overall price trend of ADA still looks positive.

The bearish pattern suggests a price target for Cardano at $0.76

The 4-hour chart also shows that ADA is trading in a bearish channel, with lower highs and lower lows. This pattern often forms during correction phases, indicating that sellers are still actively participating.

Based on the measured movement from the breakdown point of the channel, the price target for Cardano is set near the $0.76 level, which is an important support area. This means a further adjustment of 6% from the current price levels of ADA. However, before falling deeper, the price of ADA may find support at the $0.78 level if the whales return to accumulate.

Cardano price analysis | Source: TradingViewConversely, if the price of ADA can close a strong 4-hour candle above $0.85, followed by a move above $0.88, the bearish setup will be invalidated — potentially marking the end of the correction phase.

Until that happens, traders may view the fall of ADA to the level of $0.76 as a temporary cool-off rather than a complete reversal.

Mr. Giáo