ADA Drops 5% to $0.25 Amid Crypto Selloff

Cardano's ADA token traded around $0.25 on Friday, extending a recent pullback amid a broader cryptocurrency market selloff triggered by profit-taking following reports of a U.S.-Iran ceasefire agreement. The decline, which erased midweek gains, saw ADA drop about 5% over the past day, mirroring Bitcoin's slip below $71,000 and losses across major assets like Ethereum and Solana.

The downturn intensified pressure on leveraged traders, with data from CoinGlass indicating approximately $545,000 in long positions liquidated in the previous 24 hours, contributing to total ADA futures liquidations nearing $626,000. Open interest remained elevated at around $412 million, while the long-to-short ratio stood at 0.84, reflecting a bearish tilt among derivatives participants. The open interest-weighted funding rate turned negative, signaling that traders were paying premiums to hold short positions, which could limit upward momentum until stronger spot demand emerges.

Technically, ADA lingered below its 50-day, 100-day, and 200-day exponential moving averages, clustered between $0.27 and $0.40, after rejection from key resistance earlier in the week. The daily relative strength index...