Cardano [ADA] was in the news recently when it was reported that the Chicago Mercantile Exchange (CME) will support ADA Futures products starting Monday, 09 February. Alongside Cardano, Chainlink [LINK], and Stellar [XLM] would also be part of the CME’s crypto products.
The news came at a time when the crypto market was in turmoil. In fact, Bitcoin [BTC] has shed nearly 30% since 15 January, while Cardano has posted losses of 34% since then.
The bulls managed to defend the major support level at $0.267, for now. Can the CME news sustain this bounce?
Long-term trend does not favor Cardano buyers
The weekly structure was firmly bearish, and has been since October. The loss of the $0.53 support zone, which had been important in the first half of 2025, was a huge blow. At the time of writing, another key support at $0.246 had been tested.
A recent AMBCrypto report had noted that the $0.22-$0.27 area has served as a long-term Cardano demand zone since late 2022. The weekly timeframe saw a wick to $0.22 in the first week of June 2023, marking the lows bulls do not want to see invalidated.
Forecasting the next play – Will the short-term bounce continue or fizzle out?
The bullish divergence between the RSI and the price has nearly finished playing out. The 78.6% retracement level at $0.287 is likely to be tested briefly before ADA resumes its longer-term downtrend.
Traders’ call to action – Sell?
It is feasible to go short upon a retest of $0.287, targeting $0.22, with invalidation above the local high at $0.305. For long-term investors, there is no hurry to buy at the market bottom. Especially since it can take weeks and months to form.
Traders should be aware of the possibility of a liquidity hunt beyond $0.3, especially if Bitcoin climbs past $74k to push towards $80k. In this scenario, the $0.33-$0.35 supply zone should be the ceiling of the rally.
Final Thoughts
- Cardano has a long-term bearish bias, and the short-term bullish momentum divergence has nearly finished playing out.
- Fibonacci retracement levels presented a short trade setup targeting the $0.22 lows.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
