Cardano’s ADA has recently experienced a notable decline in value, now trading significantly lower than the peaks reached earlier in the summer. This analysis will explore three key factors that may provide insight into ADA’s future performance.

The Bullish Elements

As of now, ADA’s price is approximately $0.62, reflecting a 24% decrease over the past week, and its market cap has dropped to around $22.5 billion, now positioning it as the 11th largest cryptocurrency. However, ADA’s Relative Strength Index (RSI) suggests that a recovery might be imminent. The RSI is a technical analysis indicator that gauges the speed and magnitude of price movements to determine if a token is overbought or oversold, with readings around 30 indicating potential undervaluation.

ADA RSI, Source: CryptoWaves

Another positive sign is ADA’s historical performance during this time of year. A user on the platform suggested that ADA’s upward movement in 2024 initiated in November, indicating that if patterns hold true, the cryptocurrency could achieve a new all-time high by the end of 2025.

Last year, the pump started in November👀 If $ADA gets another pump like that, there’s a chance it reaches a new ATH this year.
— Sssebi🦁 (@Av_Sebastian)
Link to tweet

Something for the Bears

On the contrary, several indicators suggest that a pullback may intensify short-term. Recently, it was revealed that large holders of ADA (those owning between 100 million and 1 billion tokens) have sold off 350 million tokens within just one week. These major investors now control less than 4 billion ADA, accounting for around 10% of the circulating supply. Their selling actions may induce panic among smaller investors, prompting them to exit the market as well. Additionally, this increase in available tokens may pressure prices downward, as basic economic principles suggest that price typically falls when supply rises without an increase in demand.