Cardano (ADA) is experiencing difficult moments of late, with its price remaining down over recent weeks. While some traders see this as an indicator of weakening momentum, prominent market analyst Ali Martinez views this consolidation as a perfect purchasing opportunity before another uptrend.
ADA has been down 4.6% and 7.1% over the past seven days and monthly, respectively, currently standing at $0.8179. Despite the fall, the analyst believes the asset’s underlying strength remains intact and the decline could be short-lived.
ADA’s Profit-Taking and Bearish Outlook
Cardano, one of the more reliable proof-of-stake chains, is currently under intense pressure, struggling to breach resistance around $1.00. On-chain and derivatives metrics show that the consolidation phase is driven by increased profit-taking activity while short speculative investments are on the rise among ADA traders, indicating wider bearish market sentiment.
The latest Santiment’s NPL (Network Realized Profit/Loss) data points out that ADA investors have been realizing gains over recent weeks. Since September 23, 2025, the metric witnessed a significant jump, climbing to its highest level on yesterday, October 9. This increase signifies that long-term Cardano holders are selling their tokens for substantial profits, hence heightening the selling pressure.
Looking at the derivatives outlook, CoinGlass’s Cardano Long/Short Ratio has risen significantly. As of today, October 10, the ratio hovers at 0.82, the peak level over the past 30 days. Typically, an increase in this ratio indicates heightened bearishness in the market, as more derivatives traders are launching short positions, betting that the token’s price to drop.
Ali describes the price fall as a reason not to panic, viewing it as a healthy consolidation. The analyst disclosed that support levels could drop, sending the asset towards $0.69 or lower. He, however, said that this could provide a foundation for a potential market resurgence towards the $2 level. For Ali, the $0.69 zone is an interesting region where new purchasers could come to the market to buy at a dip, particularly those who missed earlier bull runs.
According to the analyst, such market behaviour is normal, terming it as a “reversal phase.” He hinted that projects with active communities tend to recover faster, with Cardano, one of the strong projects, having resilience and growth potential.
Cardano Joining the S&P Index and Market Prospects
Whether Cardano can break out above the $1 mark is a matter that waits to be seen. However, its recent integration into a prominent digital asset index and continuing discussions about potential ADA ETFs heighten the network’s image among mainstream investors.
This week, on Tuesday, October 7, Cardano was included in the S&P Dow Jones Crypto Index, a traditional investment product that tracks the top 50 crypto assets, providing traditional investors with exposure to a wide representation of the digital asset market. Cardano’s inclusion in this index positions it alongside major tokens like BTC and ETH.
