One analyst outlined two possible scenarios for ADA from its current phase, one bearish and the other bullish.

The weekly price chart of Cardano (ADA) is colored red, reflecting the overall market performance over the same period. The eighth-largest cryptocurrency by market cap has lost nearly 7% of its value in the past seven days, according to CoinMarketCap data.

Popular on-chain analyst Ali Martinez noted that interestingly, the ongoing trend in X is similar to that seen in 2018-20. From this point on, he outlined two possible scenarios for ADA, one bearish and the other bullish.

In the bearish scenario, a long consolidation phase was envisaged for ADA, in which participants would have to wait until 2024 for an upward move. This narrative was based on historical readings. Recall that the Covid-19 pandemic hit the market around the same time, preventing ADA from gaining bullish strength.

On the other hand, the bullish idea suggested that there could be a breakout by December, excluding the impact of unforeseen events such as Covid-19.

It made sense to examine other on-chain indicators to see if they supported ADA's recent rise. Whale supply was a reliable tool in this regard.

According to Santiment, whale investors gave mixed signals. While the cohort holding between 1,000-1 million ADA tokens has been steadily adding to their stacks over the past month, significant outflows have been seen from the group holding between 1 million-10 million coins.

Therefore, it was difficult to determine precisely the impact of whale transactions on ADA's price movement.

Despite the uncertainty and recent declines in prices, most investors appeared to have a positive view on ADA. This is evidenced by the positive Predominant Sentiment, implying that positive comments for the ADA outweigh the negative discussions around it.