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?
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.
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.
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.
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