Headline: Cardano Squeezed as Long Liquidations Push ADA Toward Key Support — Bulls Need 50‑Day EMA to Stage Recovery
Cardano (ADA) came under renewed selling pressure Thursday, extending Wednesday’s losses and trading around $0.25 as bullish momentum evaporated. Fresh long liquidations in ADA futures over the past 24 hours point to a clear shift in trader sentiment and have knocked open interest and funding rates lower.
What happened
- Intense long liquidations wiped out roughly $602,370 in ADA derivatives over the last day, with $544,540 coming from long positions, according to CoinGlass. That forced a roughly 6% drop in ADA futures open interest to about $412.36 million.
- The OI‑weighted funding rate slid to -0.0045% on Thursday, signaling traders are increasingly leaning into short positions.
Why it matters
- Heavy long liquidations are often a sign of a short‑term bearish squeeze: leveraged bullish bets get closed out, accelerating downward pressure and reducing market leverage (lower open interest).
- The broader macro backdrop hasn’t helped. Initial upbeat reaction in ADA futures after Tuesday’s US‑Iran ceasefire announcement has faded amid renewed geopolitical risk, including Israel’s missile strikes on Lebanon, leaving market sentiment mixed.
Technical picture
- ADA is trading below the 50-, 100- and 200‑day EMAs, keeping the near‑term trend bearish. For the bulls to regain control, Cardano needs to reclaim the 50‑day EMA around $0.2672 — a daily close above that level would soften the immediate bearish outlook and open a run toward resistance near $0.2991.
- Momentum indicators offer only tentative signs of stabilization: MACD is marginally positive, and the RSI sits around 53, just above neutral.
- If selling continues, ADA risks breaching the $0.2400 area and could test the March 29 low at $0.2328, with a deeper cushion at the February 6 low of $0.2205.
Bottom line
Traders are favoring shorts after a wave of long liquidations removed bullish exposure from the market. Cardano’s next meaningful recovery signal would be a sustained move back above the 50‑day EMA; until then, downside toward the $0.23–$0.22 range remains a realistic scenario.
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