ADA Seeks Positive Returns Amid February Pressure

BearMarketMonk · 2026-02-09T15:03:35+00:00

In February, Cardano (ADA) faces seasonal selling pressure, historically averaging -9.5% returns. Currently at $0.27, it needs to break key resistance levels for potential recovery. Technical analysis suggests a 90% chance of a bullish reversal if it surpasses $0.374, with higher targets seen. However, limited capital inflows from institutional investors pose a challenge, making a short squeeze essential for a sustained upward movement. The path to positive returns hinges on breakout conditions and increased buyer volume.

BearMarketMonk

2026-02-09 15:03:35

Abstract generation in progress

As we enter February, Cardano (ADA) faces seasonal selling pressure that has been observed in previous years. Historically, this month has averaged a return of -9.5%, creating a headwind for token holders. Currently, with ADA trading around $0.27, an upward move requires breaking through several key resistance levels to reverse the negative momentum and create more promising return opportunities.

Technical Signals Indicate Potential Reversal

Despite facing seasonal pressure, technical analysis from NS3.AI reveals an interesting formation. A contracting price pattern (descending wedge) combined with bullish RSI momentum divergence provides a positive signal with a breakout probability of up to 90%. However, to realize this potential, ADA must successfully surpass the first resistance level at $0.374—about 38% above the current price. If it manages to break through this area, the next target is at $0.543, offering significant upside for those confident in a bullish scenario.

Capital Flow Dynamics Still Act as a Limiting Factor

Although technical indicators tell an optimistic story, the reality of capital flows tells a different tale. There are some signs of improvement in spot asset purchases and Chaikin Money Flow, but overall capital inflows remain limited. Institutional investor inflows have not shown the strong momentum needed to sustain a continued price increase. This situation makes short squeezes—when short traders are forced to close positions—an important factor to accelerate more aggressive upward movement.

Opening Opportunities for Positive Returns

The path to positive returns for ADA is open if certain conditions are met. A combination of technical breakout and increased buying volume could create a snowball effect, pushing prices higher. Investors should monitor whether this momentum can sustain beyond the $0.374 level—an important marker that will determine whether the bullish recovery scenario materializes or remains just a fleeting hope.

ADA-4,94%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.