Key takeaways
- ADA is down 3% and is now trading around $0.2512 per coin.
- The bearish performance could see ADA slip below the $0.2400 support level.
Cardano (ADA) faces renewed selling pressure as bullish interest fades
Cardano (ADA) continues to face significant selling pressure, with the cryptocurrency extending its 4% loss from Wednesday, falling to the $0.2500 at the time of writing on Thursday.
The decline has been driven by intense long liquidations in ADA futures over the last 24 hours, signaling a diminishing bullish sentiment among traders. For a potential recovery, Cardano must reclaim the 50-day Exponential Moving Average (EMA) at $0.2672.
The broader market sentiment remains mixed, as the US-Iran ceasefire risks being undermined by Israel’s ongoing missile strikes on Lebanon. While Cardano futures initially saw some bullish interest following Tuesday’s ceasefire announcement, this has since diminished.
Data from CoinGlass reveals that liquidated ADA derivatives positions over the past 24 hours totaled $602,370, with $544,540 coming from long liquidations, indicating a significant wipeout of bullish positions. This liquidation pressure has contributed to an 6% drop in ADA futures Open Interest (OI), which now stands at $412.36 million.
Furthermore, the OI-weighted funding rate dropped to -0.0045% on Thursday, indicating that traders are increasingly shifting towards short positions.
ADA could dip below the $0.2400 support level
The ADA/USD 4-hour chart remains bearish and efficient following the recent day. ADA is currently trading below the 50-, 100-, and 200-day Exponential Moving Averages (EMAs).
Momentum indicators only hint at tentative stabilization rather than a clear bullish shift. The Moving Average Convergence Divergence (MACD) shows a marginally positive reading, while the Relative Strength Index (RSI) at 53 hovers just above the neutral midline level.
If the selloff continues, ADA could slip towards the March 29 low at $0.2328, with the February 6 low at $0.2205 providing further support.
On the flip side, if the bulls regain control, they would encounter initial resistance at the 50-day EMA around $0.2673. A daily close above this barrier would ease the immediate bearish tone and open the way toward the $0.2991 resistance level.
