Crypto analyst Ali Martinez flagged a key warning sign as the SuperTrend indicator just flipped bearish on the weekly chart.
The last time this happened, ADA plunged by 80%, raising concerns that a deeper drop could be on the horizon.
The last time the SuperTrend flipped bearish, Cardano $ADA dropped 80%. pic.twitter.com/s6B6vP0yzh
— Ali Charts (@alicharts) December 14, 2025
The previous weekly SuperTrend flip occurred in early December 2021, shortly after Cardano printed three consecutive weekly red candles.
At that point, ADA traded near $1.38. Over the following months, Cardano fell by roughly 84% to lows near $0.22 in June 2023.
ADA Price Analysis: Is an 80% Drop Possible?
Cardano is trading within a descending channel. Despite the warning signs discussed by Martinez, not all analysts expect a deep crash.
Some argue that Cardano trades near the lower boundary of a multi-year channel and may already reflect worst-case expectations.
Source: TradingView
Comparisons have emerged with the early phase of the 2020 cycle, when prices shot up after a long period of back-and-forth action.
Quantum Ascend has pointed to this structural similarity. His conservative projection places ADA above $5, with an extended target near $10 if momentum builds across the broader market.
Captain Faibik has also talked about the current zone as a favorable accumulation area, with a medium-term recovery target near $0.70.
Buying some $ADA here..!!
Expecting Trendline Breakout soon..🏄♂️🔜#Cardano #ADA #ADAUSDT pic.twitter.com/xeYbMpCaOO
— Captain Faibik 🐺 (@CryptoFaibik) December 9, 2025
From the current price near $0.40, an 80% decline would place Cardano near $0.064, a level last seen during early 2020.
Such an outcome would require catastrophic market weakness and sustained risk-off conditions.
Luckily, the technicals indicate an extended cool-off, rather than a complete sell-off.
