After a modest rebound to around $0.28, Cardano (ADA) faces pressure from both market sentiment and technical levels.
While the short-term gains over the past week and month offer a glimmer of hope, the broader trend tells a different story.
Weak ecosystem metrics cast a shadow
Cardano’s ecosystem fundamentals are currently a mixed bag.
On one hand, the network continues to expand with cross-chain initiatives, and upcoming projects are aiming to expand functionality.
On the other hand, adoption remains tepid, and market participation lags behind major competitors.
On-chain data shows Cardano’s ecosystem activity has slowed.
Cardano’s total value locked (TVL) in DeFi projects has declined sharply, reflecting reduced engagement.
Stablecoin adoption on Cardano also remains low, and new developer activity has hardly grown.
These metrics point to a network that is struggling to gain momentum, even as the broader crypto market moves higher.
Falling trading volumes in futures and other derivatives add to the caution, and the open interest is low, suggesting traders are hesitant to take large positions.
Cardano technical analysis
ADA’s price is currently hovering near a critical support at $0.24.
A drop below $0.24 could open the door for further declines.
But whale activity tells a slightly different story.
Large holders have been accumulating ADA during the recent pullback, according to data from Santiment.
This accumulation could signal that some investors see value at current levels. It may also provide a structural floor for the price, even as retail participation weakens.
Technical indicators suggest downward momentum is slowing, but confirmation of a bullish reversal is not yet present.
On the upside, the immediate resistance sits near $0.29-$0.30, and breaking through this range is essential for any sustained recovery.
Possible catalysts ahead
The Midnight mainnet launch, a privacy-focused sidechain, is scheduled to launch at the end of March 2026.
🚨 CHARLES HOSKINSON UNVEILS MIDNIGHT PRIVACY CHAIN!
Charles Hoskinson ( @IOHK_Charles ) says @MidnightNtwrk will go live in late March 2025, speaking at Consensus Hong Kong.
– Zero knowledge proofs power selective disclosure
– Google and Telegram tapped to help run network
–
x.com/i/article/2023…
This project could attract new developers and increase adoption if executed well.
Recent interactions between Cardano leadership and other blockchain communities hint at potential collaborations.
Notably, Cardano’s founder Hoskinson is reported to have had a “secret dinner” with Solana Foundation President Lily Liu, hinting at a possible collaboration.
While no formal agreements have been announced, such moves could improve ecosystem interoperability over time.
These developments are likely to influence sentiment, even if they don’t immediately impact price.
The short-term Cardano price outlook
The combination of weak fundamentals, ongoing development, and large-holder accumulation makes Cardano’s short-term path uncertain but not entirely bleak.
For now, traders and long-term holders alike face a critical test.
If support holds, the token could stabilise and gradually regain momentum.
If it fails, there is a risk of a further slide toward $0.22 or lower.
https://invezz.com/news/2026/02/17/cardano-faces-critical-test-will-support-hold-or-price-go-lower/
