Cardano (ADA) Ends September With Massive Gains: But Major Bearish Signals Are Flashing

Whales have dumped around 90 million ADA since September 20. Cardano’s native cryptocurrency posted an impressive 23% price increase over the past month and is currently trading just under $0.25. Many analysts expect October to bring further gains, but Ali Martinez outlined several important factors that could trigger a short-term pullback. Time to Cool Off? The popular X user started his analysis by noting that demand for ADA in the futures market is cooling. He said open interest has declined 9% over the last week, from almost $2 billion to about $1.81 billion. “This suggests traders are reducing leveraged exposure,” he explained. Martinez then turned to whale activity, which should serve as a clear bearish signal. According to him, large investors have offloaded 90 million tokens (worth around $22.5 million) since September 20, adding to the recent selling pressure. His third negative factor is the Tom DeMark Sequential indicator, which flashed a sell signal on ADA’s daily chart on September 26. Martinez noted that the asset’s valuation has plunged 10% since then and hinted that the correction may not be over yet. Subsequently, the market observer focused on $0.24, calling it th...