Cardano SuperTrend Turns Bearish—Last Signal Preceded 80% ADA Drop
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A cryptocurrency analyst has pointed out how Cardano has formed a technical analysis (TA) signal on its weekly chart that last led into a major price drawdown.
Cardano SuperTrend Has Flipped Bearish
In a new post on X, analyst Ali Martinez has talked about a signal that has appeared in the SuperTrend of Cardano. The “SuperTrend” refers to a TA indicator that’s generally used for determining whether a given asset is following a bearish or bullish trend. It’s built using the Average True Range (ATR), another TA indicator that measures the degree of volatility being experienced by the price.
The SuperTrend is represented by a single trendline that acts as both support and resistance, depending on which side the asset is trading. When the price is above this line, the indicator signals that the asset is in a bullish trend. On the other hand, being under the line implies the dominance of a bearish trajectory.
Now, here is the chart shared by Martinez that shows the trend in the SuperTrend of Cardano over the last few years:
As displayed in the above graph, the weekly Cardano price broke above the SuperTrend line during 2023 and stayed over it throughout 2024 and much of 2025. Recently, however, the price has finally seen a reversal of trend, with the indicator now giving a bearish signal instead.
In the chart, Martinez has highlighted what happened the last time that this pattern developed in ADA’s 1-week price. It would appear that the flip to a bearish trend led to a decline of more than 80% for the cryptocurrency in 2022. It now remains to be seen whether the SuperTrend giving a sell signal is foreshadowing something similar this time, or if Cardano will see the renewal of bullish momentum despite the pattern.
Cardano isn’t the only coin in the sector that has seen a flip in the SuperTrend recently. As the analyst has highlighted in another X post, the number one cryptocurrency, Bitcoin, has also seen a change in its SuperTrend.
From the above chart, it’s apparent that the weekly price of Bitcoin is now trading under the SuperTrend line, a sign that a bearish trend is taking over. Like for Cardano, the last time this flip happened was in the last bear market. Back then, BTC dropped by over 60%.
ADA Price
Cardano saw brief recovery above $0.48 last week, but the cryptocurrency has since witnessed a retrace as its price is now back at $0.40.
Featured image from Dall-E, charts from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
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