Cardano enters February with fading momentum following a strong January and faces historically weak seasonal returns that average -9.5% for the month. A falling wedge formation combined with bullish RSI divergence indicates a potential 90% breakout, but confirmation requires breaking key resistance levels above $0.374 and ultimately $0.543. While spot buying and Chaikin Money Flow show some improvement, overall capital inflows remain weak, making derivatives positioning and short squeeze potential critical for any upside acceleration.