Cardano Price Plunges as Retail Demand Dries Up and Bears Target Key Support

Cardano (ADA) has been trading in the red on Thursday, with approximately 10% losses so far this week, hinting at a possible capitulation after last week's 30% rally. The retail demand for ADA futures is waning, with declining Open Interest and funding rates suggesting a bearish bias among traders. This shift away from bullish momentum has left many wondering how low Cardano's price will go.

Retail demand in ADA futures is weakening, as shown by CoinGlass data indicating that the notional value of active contracts or positional wipeout has decreased over the last 24 hours. Long liquidations outpaced short liquidations, further reinforcing a bearish sentiment among traders. Additionally, the OI-weighted funding rate has turned negative, signaling a bearish bias among retail traders.

The technical outlook for ADA is also bearish, with bears targeting the 50-day Exponential Moving Average (EMA) at $0.1899. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both showing a decline in momentum, hinting that buyers are losing control. If Cardano's price extends its pullback toward the 50-day EMA, it could provide immediate support against further declines.