Cardano Breaks 3-Year Support Level, How Far Will It Fall?

▲ Cardano (ADA) / ChatGPT-generated image

Cardano (ADA) is facing an extreme surge in market fear as a key support level that has held for the past three years teeters on the brink of collapse, raising concerns of further sharp declines.

According to crypto media outlet The Crypto Basic on February 23 (local time), Cardano is currently enduring prolonged downward pressure. This latest test of support is an extension of the long-term downtrend that began after its all-time high in 2021. Analysts warn that if the $0.26 zone, which has supported the price floor for the past three years, breaks down, it could not only trigger a new yearly low from a technical perspective but also deal an irreparable blow to investor sentiment.

In particular, a 26.5% price drop over the past 30 days has significantly weakened the defense from buyers. The Supertrend resistance indicator currently stands at $0.31571, well above the current price, underscoring the strength of the prevailing downtrend. Although the stochastic indicator is approaching oversold territory, a meaningful rebound signal in the form of a golden cross has yet to appear. Experts emphasize that a close above $0.31571 is essential for Cardano to achieve a trend reversal.

The futures market is also witnessing continued capitulation from buyers. Over the past 24 hours, $1.76 million worth of long positions in Cardano futures were liquidated, accelerating the price decline. This suggests that leveraged investors betting on a rebound have largely exited, leaving market control firmly in the hands of sellers. The Crypto Basic reporter Mark Brennan noted that amid sustained bearish momentum, investors are selling into every rally.

Cardano currently ranks around 15th in market capitalization, but concerns over the potential breakdown of its key support level are prompting a cautious stance among investors. Trading volume remains relatively stable, yet buying inflows are failing to keep pace with the speed of the decline. Brennan highlighted the clear bearish bias in the indicators and the lack of immediate signs of a bullish reversal. Cardano’s future price trajectory is expected to depend on whether it can defend the $0.26 support level and on the pace of overall sentiment recovery in the broader digital asset market.

Cardano now stands at a critical technical inflection point, with the defense of the $0.26 level likely to be crucial for its long-term survival. If supply-demand stability is not restored following the wave of liquidations, further waves of disappointed selling could emerge. Market participants are closely monitoring capital movements from large holders and watching for the emergence of golden crosses in key indicators as they formulate their strategies.

Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses arising from it. The content should be interpreted for informational purposes only.