Cardano Holds Firm Support Despite Evaporating Trading Volume, "Condensing Final Energy"
Cardano Holds Firm Support Despite Evaporating Trading Volume, "Condensing Final Energy"
As trading volume across the broader cryptocurrency market plunges and a wait-and-see mood deepens, Cardano (ADA) is testing a major support level and has arrived at a critical crossroads that could determine its short-term direction.
According to cryptocurrency-focused outlet U.Today on February 8 (local time), Cardano has entered a consolidation phase marked by narrowing price fluctuations as market interest wanes. Crypto analyst Denys Serhiichuk noted that on the daily chart, defending the strong supply zone around $0.30 will be the key factor in determining whether a subsequent rally can emerge.
Cardano has recently been compressing energy within a range between $0.28 and $0.31, while a tight tug-of-war continues between buyers and sellers. Serhiichuk warned that “the Relative Strength Index (RSI) remains in neutral territory,” adding that “additional downside pressure could emerge until a clear trend-reversal signal appears.” In particular, if the daily close forms below the $0.29 level, downward pressure could intensify toward the $0.26 zone.
From a medium- to long-term perspective, a recovery in weekly trading volume will be necessary for a meaningful upward trajectory to take shape. While Cardano’s network activity remains at a steady level, liquidity is concentrated in large-cap assets such as Bitcoin (BTC) and Ethereum (ETH), slowing the rotation of capital into altcoins. Analysts view a breakout above the $0.33 resistance accompanied by heavy volume as a definitive signal of a short-term trend reversal.
Market participants are currently maintaining a cautious investment stance while closely monitoring developments related to the U.S. cryptocurrency market structure bill (CLARITY) and upcoming macroeconomic data releases. For Cardano, a recovery in investor confidence will likely require solid performance from decentralized finance (DeFi) projects within its ecosystem, along with improvements in technical indicators on higher time frames. As the prolonged sideways market continues, volatility upon a breakout could become more pronounced, underscoring the need for rigorous risk management.
Cardano is focusing on building a base after confirming strong bargain-hunting demand around the $0.30 support level, and the weekly closing price is expected to serve as a key indicator that will shape its trajectory over the coming month. Technical analysis currently places greater weight on a scenario of gradual recovery supported by this level rather than a deeper decline, although the lack of trading volume remains a persistent obstacle. Investors are advised to consider gradual portfolio adjustments while watching closely for whether prices can firmly settle above $0.32.
*Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. The publisher is not responsible for any investment losses incurred based on this content.*
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