Important requirements
- ADA is down 3% and is now trading at around $0.2512 per share.
- Bearish action could see ADA drop below the $0.2400 support level.
Cardano (ADA) is facing new pressure to sell as interest rates decline
Cardano (ADA) continues to face strong selling pressure, with the cryptocurrency extending its loss of 4% since Wednesday, falling to $0.2500 at the time of writing on Thursday.
The decline has been driven by the long-term closing of ADA in the last 24 hours, which reflects the lack of sentiment among traders. In order to recover, Cardano must recover the 50-day Exponential Moving Average (EMA) at $0.2672.
Broader market sentiment remains mixed, as the US-Iran truce could be derailed by Israel’s military strikes in Lebanon. Although Cardano’s futures initially saw interest following Tuesday’s announcement of a ceasefire, this has waned.
More from CoinGlass It shows that liquidated ADA derivative positions in the last 24 hours totaling $602,370, and $544,540 coming in long liquidations, showing a lot of wiping the bullish position. This pressure has resulted in a 6% drop in ADA futures Open Interest (OI), which is now $412.36 million.
Furthermore, OI-weighted funds fell to -0.0045% on Thursday, indicating that traders are moving more into short positions.
ADA may drop below the $0.2400 support level
The 4-hour ADA/USD chart remains stable and active following the latest day. ADA is currently trading below the 50-, 100-, and 200-day Exponential Moving Averages (EMAs).
Momentum indicators only show a gradual stability and not a noticeable change. Moving Average Convergence Divergence (MACD) is showing a slightly interesting reading, while the Relative Strength Index (RSI) at 53 moves above the moving average.
If the selloff continues, ADA could drop to the March 29 low at $0.2328, with the February 6 low at $0.2205 providing further support.
On the upside, if the bulls regain control, they may face initial resistance at the 50-day EMA around $0.2673. A daily close above this barrier lowers its low tone and paves the way to the $0.2991 resistance level.
