 ▲ Cardano (ADA) |
Cardano (ADA) has fallen back to the lowest levels seen during the previous downturn, reaching a critical technical inflection point that is testing the ecosystem’s survival.
According to cryptocurrency-focused outlet The Crypto Basic on February 10 (local time), amid a broad market sell-off, Cardano has recently dropped to around $0.27, which marked the bottom of the prior bear market, as it struggles to defend key support. Digital asset analysts note that Cardano has plunged more than 70% from its December 2024 peak, with the current price structure resembling the base levels seen just before the major rallies of 2020 and 2021. As selling pressure intensifies, Cardano’s market capitalization is being pushed below $10 billion, while 24-hour trading volume has also turned downward.
Technical indicators further support the pessimistic outlook for Cardano. Its Relative Strength Index (RSI) stands at 36.39, entering oversold territory, but investor sentiment remains depressed as the Fear and Greed Index signals extreme fear at a reading of 7. The Moving Average Convergence Divergence (MACD) continues to show a bearish crossover below the neutral line, with red histogram bars appearing persistently. The current price remains below the 20-day, 50-day, and 200-day moving averages, making it difficult to identify short-term rebound momentum.
On-chain data also point to signs of investor withdrawal. Open interest in the futures market has plunged from about $250 million recorded last September to roughly $65.75 million recently, highlighting a sharp decline in market liquidity. On higher time frames, Cardano is moving sideways within a descending trend line, and if it fails to defend the support zone between $0.25 and $0.28, there is a persistent risk of a further drop toward $0.22 or even $0.20.
Some analysts have cautiously suggested that the current harsh correction could present an accumulation opportunity for long-term investors. Given the magnitude of the decline, they argue that upside potential may outweigh additional downside pressure, but realizing this scenario would require a firm breakout above the $0.34 resistance level. Unless Cardano’s core fundamentals and its research-driven development approach regain market trust, an extended and tedious base-building phase is likely to persist.
Cardano is now testing historical cyclical support as it approaches a new turning point. If the $0.25 support level breaks, the collapse of this psychological threshold could trigger large-scale selling, warranting heightened caution. Investors are closely monitoring Bitcoin’s price movements and changes in real user activity across the Cardano ecosystem while focusing on risk management.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on its content. The information provided should be interpreted solely for informational purposes.*