Cardano (ADA) has seen its allocation in Grayscale’s Smart Contract Fund rise from 20.12% to 20.34% as of February 23, 2026. This increase makes ADA the fund’s third-largest component and highlights growing institutional confidence in the cryptocurrency’s smart contract ecosystem.

Cardano (ADA) continues to face selling pressure, falling 4.01% over the past 24 hours and 3.01% across the last week, according to CoinMarketCap data.

At the time of writing, ADA is trading at $0.2696 with a 24-hour volume of $249.77 Million, down 6.07% from the previous day. Market capitalization is $9.73 billion, reflecting ongoing downward momentum.

Also Read: Cardano Price Prediction 2026: Can ADA Break $0.30 or Fall to $0.20?

Moving Averages Indicate Sustained Selling Pressure

Cardano’s daily chart confirms a clear downtrend. Price is trading near $0.2702, below the 20-day simple moving average (SMA) at $0.2744 and far under the 50-day ($0.3316), 100-day ($0.3685), and 200-day ($0.5685) SMAs.

The moving averages are bearishly aligned and sloping downward, showing sustained selling pressure. Repeated failures to reclaim the 20-day SMA indicate weak short-term momentum.

Bollinger Bands suggest compressed volatility following a sharp February decline. The lower band sits near $0.2509, providing immediate support, while the upper band at $0.2979 marks short-term resistance.

Price recently rebounded from the lower band but stalled below the midline, showing the bounce lacks strong bullish conviction. Consolidation between $0.25 and $0.28 appears likely.

As observed on TradingView, a strong break below $0.2500 may bring about the possibility of further downside movement towards the region of $0.22-$0.21. On the other hand, a break above $0.2970 would be the first sign of positive momentum, with stiffer resistance at $0.3316.

Until then, with the price yet to close above the 50-day moving average, the dominant trend remains negative.

Cardano Expands Interoperability with LayerZero

Cardano has achieved a major interoperability milestone by connecting with over 80 blockchains through the integration of LayerZero.

This development enables users to interact with multiple blockchains, allowing the transfer of liquidity and engaging with the DeFi ecosystem, thereby taking Cardano out of the single-chain environment.

This integration enables seamless asset, value, and data transfer between connected blockchains. This makes Cardano a versatile and multi-chain player.

Analysts believe that this development could encourage adoption and development in the crypto space. For investors, this development makes the ecosystem more useful, which could influence demand for ADA.

Why This Matters

Institutional ADA-related precedents may influence the overall market sentiment, and this will help shape the strategies of investors in other altcoins worldwide.

Cardano’s interoperability initiative with LayerZero expands the DeFi opportunities, and this will enhance the overall adoption potential of the DeFi ecosystem.

Also Read: Why Cardano’s ADA Fell 58% Yet NFT and DEX Growth Surged

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Filed under: Bitcoin - @ February 23, 2026 2:00 am