Cardano Faces Challenges Amid Weak February Returns

Cardano begins February with diminishing momentum after a robust January performance, encountering historically weak seasonal returns averaging -9.5% for the month. According to NS3.AI, a falling wedge pattern coupled with bullish RSI divergence suggests a possible 90% breakout. However, confirmation hinges on surpassing key resistance levels above $0.374 and ultimately $0.543. Despite some improvement in spot buying and Chaikin Money Flow, overall capital inflows remain subdued. This situation makes derivatives positioning and the potential for a short squeeze crucial for any acceleration in upward movement.