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Cardano (ADA) is facing intense liquidations as the price volatility on the broader crypto market continues. Notably, total liquidations on the four-hour chart showed an imbalance between Cardano long and short positions.
Cardano short traders suffer huge losses
The latest data from CoinGlass revealed that total ADA liquidations in the last four hours reached $180,350. Traders holding short positions of ADA suffered more liquidations than long traders during the period, creating an imbalance.
According to CoinGlass data, long ADA positions faced liquidations worth $10,900. In contrast, short traders suffered liquidations amounting to $169,450. The losses resulted in Cardano printing a massive liquidation imbalance of 1,454% in favor of bear traders.
Cardano experienced persistent price volatility in the past few weeks. This resulted in ADA climbing above the projections of short-position traders.
The 1,454% liquidation imbalance has shattered the strong confidence in the future price action of ADA. As of press time, ADA is down slightly by 0.73% over the last 24 hours, currently trading at $0.558. Additionally, the daily trading volume decreased by 0.3% to $702.7 million.
Can ADA hit new highs?
The latest price decline in ADA coincides with signs of high volatility on the broader crypto market. Bitcoin (BTC), the leading market coin, is still fighting to climb above the $107,000 level. Similarly, Ethereum (ETH) is down 0.18% to $2,450. Other altcoins, such as Solana (SOL), Dogecoin (DOGE) and XRP, are also experiencing a downtrend.
However, anticipation is high that ADA could see a bullish outcome soon. Traders and analysts' projections are based on a potential ADA Exchange-Traded Fund (ETF).
Reports from U.Today revealed the U.S. Securities and Exchange Commission (SEC) formally recognized a recent amendment from Grayscale. The firm proposed to convert its Digital Large Cap Fund into an ETF. The fund holds major cryptocurrencies, including ADA, XRP and SOL.
Still, the ability of ADA to hit new highs is largely dependent on how holders react to its persistent volatility.
Vladislav Sopov
U.Today Editorial Team