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Despite aggressive shorting pressure pushing Cardano lower, traders increasingly expect $ADA to trade sideways before a significant upside.
Over the past few days, Cardano has remained bearish, with $ADA down 6.34% on the week. Although the token briefly climbed to nearly $0.43, it has since slipped below $0.40 and is now consolidating between $0.36 and $0.37.
Key Points
- $ADA remains bearish in the short term, down 6.34% over the past week, reflecting sustained selling momentum.
- $0.3711 serves as a critical consolidation level that could pave the way for massive accumulation and an upside move to $9.62.
- Macroeconomic risks remain a key threat and could nullify any strong upside move.
- Large investors continue to increase their exposure, with 210 million $ADA accumulated in three weeks.
Critical Consolidation Level That Could Fuel a Strong Rally
In a recent commentary, analyst Emilio Bojan criticized persistent bearish positioning against $ADA, suggesting that continued shorting of utility-focused projects is misguided. Rather than calling for an immediate breakout, he identified $0.3711 as the key level where he wants $ADA to consolidate.
According to Bojan, this range-bound action could support healthy accumulation and gradually set the stage for expansion. The accompanying chart supports this view, showing $ADA stabilizing around the $0.3711 support zone.
Consequently, Bojan sees the current base-building phase as a precursor to the next major expansion cycle. From this level, he projects potential rallies of 107.28%, 533.74%, 1,213%, and 2,493%, which could lift $ADA to approximately $0.76, $2.34, $4.87, and $9.62, respectively.
While Cardano has previously reached the $0.76 and $2.34 targets, moves to $4.87 and $9.62 would set new all-time highs for the token.
$ADA Faces Consistent Bearish Pressure in 2026
Meanwhile, Cardano has faced intense selling pressure in 2026. After a weak performance in Q4 2025, $ADA started the year strongly, surging 30.91% in the first six days as it climbed from $0.3328 to $0.4357.
However, the rally quickly faded, with $ADA posting steady losses and extending its intraday decline streak to 13 days. Over the weekend, renewed U.S. tariff pressure against eight countries intensified the sell-off, dragging $ADA down from around $0.39 to $0.36. As a result, macro headwinds sabotaged any gains $ADA could have experienced from its recent surge in bullish sentiment.
Whales Accumulate 210M $ADA
Amid the downturn, large investors took advantage of lower prices to increase their exposure to Cardano. Market analyst Ali Martinez reported that whales accumulated 210 million $ADA over the past three weeks, boosting their total holdings to 13.66 billion.
Meanwhile, despite Emilio Bojan’s projection of a potential 2,493% upside, market conditions remain volatile due to mounting tariff risks. With the U.S. set to impose a 10% tariff on imports from several European countries starting February 1, analysts warn that possible EU retaliation could heighten volatility and further pressure risk assets.
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finbold.com
cointelegraph.com
u.today