Cardano (ADA) faced a sharp rejection near the $0.178 resistance level on Wednesday, sliding 1.5% as leveraged demand showed signs of exhaustion. The pullback erased gains from two consecutive recovery sessions earlier in the week, leaving the cryptocurrency vulnerable to further downside pressure.
Data from CoinGlass reveals a notable cooling in the Cardano derivatives market over the past 24 hours. Futures open interest fell 4.7% to $411 million, while trading volume dropped 45% to $329.1 million. A simultaneous decline in both metrics typically indicates fading retail interest and reduced market conviction, suggesting that speculative enthusiasm is waning.
Liquidation data further underscores the bearish tilt. Long positions bore the brunt of recent liquidations, with $273,040 in longs wiped out compared to $162,360 in shorts. This imbalance points to persistent selling pressure and a cautious stance among leveraged traders. The funding rate, while still positive at 0.0044%, has eased from 0.0088% the previous day, signaling that bullish sentiment among leveraged participants is gradually weakening.
On the technical front, Cardano continues to trade below key resistance levels. The 50-day exponential moving average (EMA) at $0.1770 and a descending trendline near $0.1782 form a formidable overhead supply zone that has repeatedly rejected bullish attempts. The token remains above the broken structural support at $0.1629, which now serves as the first major support area.
Momentum indicators present a mixed picture. The Moving Average Convergence Divergence (MACD) histogram remains slightly positive, suggesting that bullish momentum has not completely evaporated. The Relative Strength Index (RSI) hovers around 59, indicating a mildly bullish bias but lacking strong directional conviction. Overall, the inability to reclaim key resistance levels keeps the broader technical outlook tilted toward the downside.
If buyers manage to regain control, the first hurdle remains the 50-day EMA at $0.1771, followed closely by the descending trendline at $0.1782. A decisive breakout above this resistance zone would weaken the current bearish structure and could open the path toward the next major resistance at $0.2205. Conversely, if sellers maintain dominance, immediate support lies at $0.1629. A break below this level could accelerate losses toward the horizontal support area around $0.1486, where buyers may attempt to establish a stronger base.
The broader market context also warrants attention. As noted in our earlier coverage, ADA traders turned bearish despite Cardano's Van Rossem hard fork success, highlighting that technical upgrades alone may not sustain bullish momentum. Additionally, whale holdings hit 25.65 billion ADA ahead of the hard fork, but the current price action suggests that large holders are not stepping in to support the market.
Until Cardano clears its overhead resistance, declining futures activity, weaker retail participation, and cautious technical indicators suggest that the cryptocurrency may continue to face downward pressure in the near term.
This article is for informational purposes only and does not constitute financial advice.
