Cardano buying interest evaporates as a selling storm hits will the gates of hell open in Q1 2026
Cardano buying interest evaporates as a selling storm hits will the gates of hell open in Q1 2026
Cardano (ADA) has failed to reclaim the resistance line of its descending channel, standing at a crossroads between a breakdown of support due to the disappearance of buying pressure and further downside.
According to cryptocurrency-focused media outlet The Crypto Basic on February 10 (local time), Cardano has been moving within a descending channel from a technical analysis perspective and has failed not only to break above the upper resistance line but even to reach it, ceding full market control to bears. Analysts assess that this price action signals a severe depletion of buying momentum, and tracing a downward curve without testing the channel’s upper boundary is a classic precursor to further declines. Currently, Cardano is trading nervously near the psychological threshold of $0.30.
Technical indicators further reinforce Cardano’s bleak outlook. Its Relative Strength Index (RSI) has fallen below 40 and is approaching oversold territory, yet there is no sign of bargain buying as seen in the past. The Moving Average Convergence Divergence (MACD) also continues to cross downward below the neutral line, showing that bearish pressure still dominates the market. On higher time frames, Cardano remains firmly trapped below both the 20-day and 50-day moving averages, creating a technical environment unfavorable for a short-term rebound.
On-chain and market data analyses indicate that investor fear has reached extreme levels. Even optimists who had expected altcoins to benefit from shifts in Bitcoin (BTC) dominance are liquidating positions in disappointment over Cardano’s independent weakness. In particular, declining open interest in the futures market suggests that even speculative capital is turning away from Cardano. Its market capitalization has shrunk sharply alongside the price decline, while 24-hour trading volume has dropped by more than 40% compared to last month’s average, signaling waning market interest.
The most critical scenario is a break below the lower support line of the descending channel at $0.28. Analysts believe that Cardano’s failure to reclaim the upper resistance at $0.34 has compressed downside energy even further. If the $0.28 support level collapses, the price could quickly fall by the width of the channel, plunging toward $0.22 or even $0.20. This would represent an additional loss of more than 30% from current levels and could be catastrophic for investors.
Cardano is currently exhibiting the worst passive price action within its descending channel, standing at the starting point of a new downward wave. In contrast to other major assets such as XRP, which have shown relative resilience, Cardano’s lethargy risks spreading into a broader crisis of confidence across its ecosystem. If it fails to defend the final bastion at $0.28, Cardano is expected to remain stuck in a prolonged downturn. Investors are closely monitoring whether support holds while maintaining rigorous risk management.
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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