Risk of a Vertical Drop to $0.23 as Whales Dump Cardano and Exit

▲ Cardano (ADA)

Cardano (ADA) is standing at a critical crossroads at the key support level of $0.255, heightening tension in the market.

According to cryptocurrency media outlet The Crypto Basic on February 13 (local time), Cardano has recently continued its downward trend and is testing support after settling around the psychological threshold of $0.255. Technical analysts warn that if Cardano fails to defend this price level, increasing downside pressure could quickly push it down to the $0.23 range. Market participants are closely watching whether the price can establish a bottom and rebound or if this marks the beginning of a full-fledged downtrend cycle.

The biggest obstacle preventing Cardano’s rebound at present is the Ichimoku Cloud resistance zone. A thick cloud has formed above the current price range, exerting strong selling pressure on every upward attempt. For bulls to stage a reversal, the price must decisively break above the $0.28 resistance level. However, given the current supply and demand dynamics, establishing a strong short-term breakout appears challenging.

Among retail investors, concerns are spreading about the possibility of Cardano breaking below its support level. However, some analysts are leaving room for a technical rebound due to oversold conditions. With the Relative Strength Index hovering near the lower range, an influx of bargain buying could trigger a temporary relief rally. Nevertheless, the broader trend on higher time frames remains downward, suggesting that cautious risk management is more appropriate than aggressive dip-buying at this stage.

Growing volatility across the broader digital asset market, including Bitcoin, is also having a significant impact on Cardano’s price movement. Experts generally agree that if the leading cryptocurrency continues its decline, it will be difficult for Cardano to secure independent upward momentum. In particular, as the weekly close approaches, supply-demand imbalances could intensify, making the defense of key support levels a decisive factor for market direction over the next month.

Cardano is currently engaged in a fierce battle for survival, and if the critical $0.255 threshold collapses, investor sentiment is expected to freeze further. The longer the price fails to break through resistance and continues its downward trajectory, the stronger market pessimism is likely to grow, potentially weighing heavily on the broader ecosystem.

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