Cardano SuperTrend turns bearish—last signal preceded ADA's 80% drop. Coinstar

A cryptocurrency analyst pointed out that Cardano has formed a technical analysis (TA) signal on its weekly chart that last led to a big price drop.

Cardano SuperTrend has reversed the decline

In the new one publish on X, analyst Ali Martinez talked about the signal that appeared in Cardana’s SuperTrend. “SuperTrend” refers to a TA indicator that is generally used to determine whether a particular asset is following a bearish or bullish trend. It is constructed using the Average True Range (ATR), another TA indicator that measures the degree of volatility experienced by a price.

The SuperTrend is represented by a single trendline that acts as both support and resistance, depending on which side the asset is trading on. When the price is above this line, the indicator signals that the asset is in a bullish trend. On the other hand, being below the line implies the dominance of a bearish trajectory.

Here’s a chart shared by Martinez showing the trend in Cardano’s SuperTrend over the past few years:

As shown in the chart above, the weekly Cardano price broke above the SuperTrend line during 2023 and held above it throughout 2024 and most of 2025. Recently, however, the price has finally seen a trend reversal, with the indicator now giving a bearish signal instead.

In the chart, Martinez pointed out what happened the last time this pattern developed in ADA’s one-week price. A bearish reversal appears to have led to a more than 80% drop for the cryptocurrency in 2022. Now it remains to be seen if the SuperTrend that gives a sell signal heralds something similar this time around, or if Cardano will see a renewal of bullish momentum despite the pattern.

Cardano is not the only coin in the sector that recently experienced a reversal in the SuperTrend. As the analyst pointed out in another X publishThe number one cryptocurrency, Bitcoin, has also seen a change in its SuperTrend.

From the chart above, it can be seen that the weekly price of Bitcoin is now trading below the SuperTrend line, which is a sign that the bearish trend is falling. As with Cardano, the last time this reversal happened was in the last bear market. Then BTC fell by over 60%.