Cardano Plunges 65% in a Year, Warning Signals as Key Support Breaks Again

▲ Cardano (ADA)

Cardano (ADA) has seen its price pushed down near the psychological support level of $0.26, intensifying its technical downtrend as a large number of investors who had bet on long positions faced liquidation.

According to crypto media outlet U.Today on February 23 (local time), Cardano is trading at around $0.2648, down 4.2% over the past 24 hours. A sharp vertical decline in recent hours has formed a narrow price range between $0.2589 and $0.2772. In the short term, it is attempting a modest rebound of 0.9%. However, the asset remains under long-term downward pressure, having fallen 26.5% over the past month and 65.5% over the past year.

In the derivatives market, mounting selling pressure has triggered a wave of capitulation among leveraged bulls. Over the past 24 hours, total liquidations in the Cardano futures market reached $1.82 million, with long positions accounting for $1.76 million of the total. This suggests that investors who held out expectations of a rebound during the decline suffered significant losses, indicating that market control remains firmly in the hands of sellers.

Technical indicators are also warning of further downside potential for Cardano. The current price remains well below the Supertrend resistance level formed near $0.31571, confirming that the downtrend is still intact. For the indicator to shift bullish, a decisive close above $0.31571 is required, but upside resistance remains strong for now. Additionally, the stochastic indicator is showing weak momentum near the lower range, making a strong trend reversal in the short term unlikely.

Cardano currently maintains a market capitalization of approximately $9.7 billion, ranking within the top 15 cryptocurrencies by market cap. However, continued selling pressure has put it at risk of setting a new yearly low. Market participants are closely watching the $0.26 support level, as a breakdown could accelerate the pace of decline. Although dip-buying interest is emerging, no meaningful change in trading volume has been observed due to overall weakened market sentiment.

Amid continued weakness across the broader digital asset market, Cardano appears determined to defend the critical technical level of $0.26. Experts advise a cautious approach, noting that while indicators are approaching oversold territory, a clear golden cross has yet to materialize. Cardano’s future price direction will likely depend on whether it can break through key resistance levels and how quickly supply and demand stabilize following the recent wave of liquidations.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The information provided should be interpreted for informational purposes only.