Cardano’s ADA token faces a pivotal moment as it concludes the trading month. The asset is grappling with a key support region despite the network achieving significant fundamental milestones, including a new constitution and fresh DeFi protocol launches. Market participants are now focused on whether buyers can hold crucial price levels or if a renewed sell-off is imminent.
Diverging Signals Between Price and Network Activity
Beneath the surface of price volatility, the Cardano project continues to advance its core infrastructure. The network’s new constitution officially took effect on January 24, 2026, having been ratified with 79% approval. This framework establishes more rigorous standards for budget approvals and governance actions. Furthermore, ecosystem development remains active with the launch of the Surge Protocols, which bring automated trading strategies directly onto the blockchain—a move anticipated to boost future trading volume and network usage. An additional allocation of 70 million ADA for infrastructure initiatives, such as stablecoin integrations, underscores that development progress is continuing independently of short-term market fluctuations.
Whale Accumulation Amidst Market Weakness
On-chain data presents a contrasting narrative to the bearish price action. Entities holding between 1 million and 10 million ADA, often referred to as “whales,” have been accumulating tokens, adding approximately 100 million coins to their balances since mid-January. Market observers interpret this as a notable divergence: while short-term traders contribute to volatility, long-term oriented investors and large-scale holders appear to be positioning for a potential recovery. This buying pressure from major addresses could provide essential stabilization around the annual lows.
Should investors sell immediately? Or is it worth buying Cardano?
Technical Picture Hangs in the Balance
From a chart perspective, the bears currently hold sway. ADA is trading near $0.36, placing it dangerously close to the significant demand zone between $0.30 and $0.35. A weekly decline exceeding 8% highlights the sustained selling pressure. Technical analysts identify this area as a final defensive line; a breakdown could trigger a deeper slide toward $0.28. The weekly MACD indicator confirms the persistent negative momentum.
To reverse the current downtrend, ADA would need to swiftly reclaim the $0.42 resistance level. Failure to do so risks transforming what might be a correction into a confirmed trend breakdown. The monthly close is therefore seen as a decisive factor for near-term direction. A successful defense of the $0.30-$0.35 zone would maintain a constructive broader setup. Conversely, a breach below $0.282 would significantly deteriorate the chart structure. As the community looks ahead to the planned “Buidler Fest” in Argentina this March, bullish investors are in need of technical confirmation to restore confidence in the price trajectory.
Ad
Cardano Stock: Buy or Sell?! New Cardano Analysis from January 28 delivers the answer:
The latest Cardano figures speak for themselves: Urgent action needed for Cardano investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from January 28.
Cardano: Buy or sell? Read more here...