Cardano's ADA token has plunged to test a critical multi-year support level around $0.240-$0.2625, pressured by a combination of macroeconomic headwinds and broader crypto market weakness. The price decline of over 3.5% coincides with former President Donald Trump's announcement of an immediate global tariff increase from 10% to 15%, which has pressured risk assets, including cryptocurrencies.
Despite the bearish price action, institutional confidence appears to be growing. Grayscale Investments has increased Cardano's allocation in its Smart Contract Fund to 20.34%, up from approximately 18.5% in January 2026. This makes ADA the fund's third-largest holding, behind Solana (SOL) and Ethereum (ETH), and indicates steady institutional accumulation even as the retail market sells off.
Technically, ADA has broken below the 0.236 Fibonacci retracement level at $0.2682, with its Relative Strength Index (RSI) reading of 38.71 approaching oversold territory. The token is now testing a support zone that held firm during the previous bear market, with a base near $0.240. A failure to hold this level could see ADA drop toward $0.17, with further support near $0.10.
Market indicators paint a mixed picture. Cardano's MVRV (Market Value to Realized Value) ratio has dropped sharply, signaling that many holders are at a loss—a condition often seen near the later stages of a downtrend. Simultaneously, declining Open Interest suggests reduced speculative activity and lower trader participation.
