Cardano breaks below key support, warning of a further drop to $0.11
Cardano breaks below key support, warning of a further drop to $0.11
Cardano (ADA) has broken below a key technical support level represented by a Fibonacci extension, putting even the $0.25 level at risk.
According to cryptocurrency-focused media outlet The Crypto Basic on February 6 (local time), Cardano plunged 10.4% over the past 24 hours and is trading around $0.2503. On a weekly basis, it has fallen 22.8%, and over the past two weeks it has posted losses of about 30.5%, underperforming market leader Bitcoin (BTC) by 1.5% and showing notable relative weakness. Analysts noted that Cardano is currently facing strong resistance after slipping below the $0.34 level, which corresponds to the Fibonacci 0 retracement.
Experts identified the $0.34 level as a critical point that Cardano must reclaim to return to an upward trajectory. If the price fails to break through this resistance and downward pressure persists, a further decline toward the next support zone around $0.22 appears unavoidable. Cryptocurrency analyst Ali Martinez warned that if the current downtrend intensifies, Cardano could retreat from the initial support at $0.249 to extreme levels as low as $0.115 and even $0.053 in the worst-case scenario.
Technical indicators are also signaling increased volatility. Measures similar to the Average Directional Index (ADX) suggest that price fluctuations may intensify. Should Cardano overcome the $0.3449 resistance, the next liquidity supply areas would likely be the Fibonacci 23.6% retracement at $0.37 and the 38.2% retracement at $0.38. However, prevailing sentiment suggests that breaking through these resistance levels will be challenging in the current sell-dominated market environment.
As the crypto market winter deepens, Cardano investors are weighing the immediate challenge of $0.543 against the longer-term goal of reclaiming the $1 level. While Bitcoin continues a fragile battle around the $60,000 support, Cardano likewise appears to be caught in broader market deleveraging rather than finding an independent catalyst for a rebound. Analysts added that rather than a short-term recovery, whether prices can stabilize at major support levels will be the key factor shaping the trend in the first half of 2026.
Ultimately, Cardano faces a dual challenge of weakening technical support and prevailing bearish market sentiment. If it fails to regain the strong resistance at $0.34, the downtrend is likely to persist for some time, making downside risk management essential for investors. The market is closely watching whether Cardano can confirm meaningful buying interest around the $0.249 level and establish a price bottom.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on it. The content should be interpreted solely for informational purposes.*
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