ADA may be lowered by broader market pressure.
Key receivers
ADA is down 3% and is now trading at $0.2512 per coin. A bearish performance could see ADA slip below the $0.2400 support level.
Cardano (ADA) is facing renewed selling pressure as demand fades
Cardano (ADA) continues to face heavy selling pressure, with the cryptocurrency extending its 4% loss since Wednesday, falling to $0.2500 at the time of writing on Thursday.
The decline was driven by heavy long liquidations in ADA futures over the past 24 hours, indicating waning bullishness among traders. To recover, Cardano needs to retrace its 50-day exponential moving average (EMA) at $0.2672.
Broad market sentiment remains mixed as the US-Iran ceasefire threatens to be undermined by Israel's missile strikes on Lebanon. While Cardano futures initially saw some bullish interest following Tuesday's cease-fire announcement, this has waned.
Data from CoinGlass ADA derivatives liquidated in the last 24 hours showed $602,370, with $544,540 coming from long liquidators, indicating the loss of large positions. This liquidity pressure contributed to a 6% drop in ADA Futures Open Interest (OI), which now stands at $412.36 million.
In addition, the OI-weighted financial support decreased to -0.0045% on Thursday, indicating that traders are increasing their short positions.
ADA may drop below the $0.2400 support level.
The 4-hour chart of ADA/USD remains bullish and bullish on a recent day. ADA is currently trading below the 50-, 100-, and 200-day exponential moving averages (EMAs).
Momentum indicators suggest only temporary stability rather than clear bullish change. The Moving Average Consolidation Divergence (MACD) is showing a slightly positive reading, while the Relative Strength Index (RSI) is hovering above the Neutral Intermediate Level at 53.
If the selloff continues, ADA could slide back to the March 29 low at $0.2328, with the February 6 low at $0.2205 providing additional support.
On the downside, if the bulls regain control, they will face initial resistance at the 50-day EMA around $0.2673. A daily close above this barrier will ease immediate bearish volume and pave the way to the $0.2991 resistance level.
