Cardano Advances 17% But Weak Sentiment Threatens Recovery

After a 20% decline, Cardano managed to regain momentum with a 17% increase, bringing ADA to $0.27 as of February 22. However, the recovery faces a significant obstacle: market sentiment remains weak, creating uncertainty about the sustainability of this upward move.

Positive Signals from Whales and Exchange Outflows

The rebound was supported by two key technical factors. According to data from NS3.AI, there was a strong mass purchase by large investors during the decline, a behavior that historically signals institutional confidence. Simultaneously, there were massive withdrawals of coins from exchanges, suggesting that significant holders are moving their assets to personal wallets—an action commonly interpreted as bullish.

Weak Sentiment Obstacle

Despite these positive signs, the overall picture is not entirely optimistic. Market sentiment has dropped sharply, with positivity metrics falling 90%. Recent data show a balanced scenario between optimism and pessimism (50% each), reflecting a clear division among investors. This polarization poses a real risk that the recovery may not sustain its gains, especially if risk aversion returns.

Critical Technical Levels

Prices between $0.22 and $0.26 served as support zones during the decline. The fact that ADA broke through this range to $0.27 is a positive development that should not be ignored. If sentiment improves and buying pressure persists, the coin could approach the $0.30 target, representing an approximately 11% upside from current levels.

Forward Outlook

Cardano’s next phase will heavily depend on how weak sentiment evolves in the coming weeks. The combination of whale accumulation and exchange outflows provides a solid technical foundation, but without an improvement in market climate, volatility may outweigh the upward trend.