Cardano is currently approaching a technically important price zone that has defined its market structure for several years. This price behavior suggests that sustained selling pressure could place this support under serious threat. If that level fails, the downside implications for ADA could be significant, especially because of the current weakness in the broader market.
Recent price action shows that ADA started the new trading week on a fragile footing. The token has already declined by roughly 1.33% on the day, reflecting a wider weakness across the cryptocurrency market. This downturn coincided with a brief slide in Bitcoin, which temporarily fell below the $65,000 mark, reinforcing bearish momentum among altcoins.
ADA’s longer-term trend gives room for concern. The asset has been trapped in a prolonged consolidation phase, with limited upside follow-through over several months. This stagnation has now placed Cardano on course for a sixth consecutive monthly decline. This pattern shows persistent distribution pressure rather than accumulation.
Market participants are paying close attention to a price area around $0.24, which has historically acted as a major demand zone. This level served as a foundation during the previous bear market cycle and has repeatedly attracted buyers during periods of increased selling.
According to analysis shared by the widely followed market commentator Mercury, this zone represents a three-year structural support that has not been conclusively broken since it was established.
Previous attempts to move decisively below this range have failed. Notably, ADA dipped to approximately $0.22 in mid 2023, but buying interest quickly emerged, preventing a sustained breakdown. That defense eventually led to a broader recovery later in the year, with price strength accelerating into October 2023.
I wonder what happens to Cardano when it breaks down below a 3-year support level pic.twitter.com/OIjVCZkAA2
— Mercury (@TraderMercury) February 22, 2026
From Strong Recovery to Full Retracement
Following its rebound from the $0.24 region, ADA experienced a surge that carried it to a cycle peak near $1.32. This rally represented a near sixfold increase from its base, demonstrating how influential the support level has been in shaping Cardano’s market cycles. However, those gains have since been fully erased, with the token now trading once again within proximity to the same demand zone.
This full retracement has raised concerns about whether the support remains structurally intact or if repeated testing has made it weak. Technical theory generally suggests that the more frequently a support level is tested, the greater the probability of an eventual failure, especially in the absence of improving momentum.
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The Possibility of a Breakdown
ADA has already shown signs of vulnerability in recent weeks. During the February 6 macro-driven sell-off, the token briefly slipped back toward $0.22 before buyers intervened once again. While some traders interpret this reaction as evidence that a local bottom may be forming, others remain cautious.
Mercury has publicly questioned the market’s ability to sustain this level if bearish conditions continue. From a risk perspective, a breakdown now appears increasingly plausible unless sentiment shifts meaningfully in the near term. Without renewed buying strength, the support could give way under continued market stress.
Possible Downsides if Support Fails
Should ADA lose the $0.24 region, historical price data suggests limited structural support below. The next notable area of consolidation lies near $0.17, where the asset spent several weeks stabilizing before its late-2020 breakout. Below that, the psychological $0.10 level represents another potential target, last observed during early November 2020.
If the token moves toward $0.10, this would imply a decline of more than 60% from current levels, demonstrating the severe risk associated with a confirmed breakdown.
Nonetheless, how far ADA could fall would depend on broader market dynamics, liquidity conditions, and the degree of fear triggered by a loss of long-term support.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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