Key takeaways
- ADA is down 3% and is now trading at around $0.2512 per coin.
- A bearish performance could take ADA below the $0.2400 support level.
Cardano (ADA) is facing renewed selling pressure as bullish interest fades
Cardano (ADA) continues to face significant selling pressure, as the cryptocurrency extended its 4% loss as of Wednesday, falling to $0.2500 at the time of writing on Thursday.
This decline was driven by intense long liquidations in ADA futures over the past 24 hours, indicating waning bullish sentiment among traders. For a potential recovery, Cardano must reclaim the 50-day Exponential Moving Average (EMA) at $0.2672.
Broader market sentiment remains mixed, as the US-Iran ceasefire risks being undermined by ongoing Israeli missile attacks on Lebanon. While Cardano futures initially saw some bullish interest following the ceasefire announcement on Tuesday, this has since diminished.
Data from CoinGlass It reveals that liquidated ADA derivatives positions in the last 24 hours amounted to US$602,370, of which US$544,540 was coming from long liquidations, indicating a significant clearing of bullish positions. This liquidation pressure has contributed to a 6% decline in ADA futures open interest (OI), which now stands at $412.36 million.
Furthermore, the OI Weighted Funding Rate fell to -0.0045% on Thursday, indicating that traders are increasingly shifting towards short positions.
ADA may fall below the $0.2400 support level
The 4-hour chart of ADA/USD remains bearish and active after the last day. ADA is currently trading below the 50, 100 and 200 day Exponential Moving Averages (EMAs).
Momentum indicators only point to an initial stabilization and not a clear upward shift. The Moving Average Convergence Divergence (MACD) indicator is showing a marginally positive reading, while the Relative Strength Index (RSI) at 53 is hovering just above the neutral midline level.
If the sell-off continues, ADA could slide towards the March 29 low of $0.2328, with the February 6 low of $0.2205 providing further support.
On the flip side, if the bulls regain control, they will face initial resistance at the 50-day moving average around $0.2673. A daily close above this barrier would ease the immediate bearish tone and open the way towards the $0.2991 resistance level.
