Cardano (ADA) has fallen below the $0.24 level, increasing the likelihood of further declines.

On Oct. 13 (local time), blockchain outlet The Crypto Basic reported that analyst Ali Martinez (알리 마르티네즈) assessed Cardano as heading into a correction zone, citing whale investor selling and a slowdown in network activity.

Martinez pointed to $0.24 as a key price level. ADA is trading at $0.2386, slightly below that level. If support at the rising channel breaks, it could fall about 12 percent further toward the lower boundary near $0.21, the analysis said.

Market pressure was first confirmed in selling by large holders. On-chain analytics firm Santiment said large holders have sold more than 110 million ADA over the past five days. That supply is adding to selling pressure as prices test support levels.

Network participation indicators have also weakened. Daily active addresses fell 41.36 percent to 15,977 from 27,248. With large-holder selling and a drop in active addresses occurring at the same time, concerns are growing that demand for ADA has weakened at current price levels.

Short-term price action is also weak. ADA is down about 6.8 percent over the past seven days. It is up 15 percent over the past 30 days, but that translates into a 28.32 percent decline in returns since the start of the year.

Network throughput, however, increased. Cardano set a record by processing 1,780,896 transactions in epoch 660, which ran from Oct. 6 to 11. Fees totalled about 337,720 ADA, and the average fee per transaction was 0.19 ADA. Still, an increase in transaction volume does not necessarily lead directly to growth in unique users or a rebound in the ADA price, which remains a limiting factor.

Conditions for a price rebound are also clear. Martinez saw a recovery of $0.24 as a possible starting point for reclaiming the key zone. But as long as large-holder selling and declining network activity persist, any rebound attempt could also face pressure.

As a result, whether it can hold the $0.24 level has become the most important near-term inflection point. If it fails to regain that zone, the market could price in the possibility of a further correction toward $0.21. If it moves back above $0.24, the next point to watch will be whether the recent drop begins to ease.

CARDANO READY FOR BIG CORRECTION 1/5