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Cardano (ADA), the 10th-ranked cryptocurrency, is again facing price volatility. This has triggered a staggering 1,512% liquidation imbalance for ADA bulls who were betting on the asset, potentially pushing it to $1 in its ongoing rally.
Cardano bulls lose over $12M as price dips
According to CoinGlass data, in the last 24 hours, long position traders lost $13.08 million as the price slipped, reversing its upward journey toward the $1 level. The price shift caught Cardano bulls off guard, hence the massive loss recorded.
As of this writing, Cardano's price was trading at $0.8208, representing a 3.64% decline over the last 24 hours. The asset, which earlier reached an intraday high of $0.8601, plunged rapidly to $0.8008 before regaining some ground.
However, this volatility was enough to wipe out long-position traders in the ecosystem. Meanwhile, short position traders also recorded some losses. Short traders lost $764,060 within the same time frame, bringing the total liquidation to $13,084,060.
A crucial Cardano technical indicator suggests that the asset has slipped into an overbought zone, as its Relative Strength Index (RSI) has reached 78.01. This triggered a pullback as investors decided to take profits.
Despite this development, optimism about a continued rally still lingers in the Cardano community, as the price drop has not lost significant ground.
Can DeFi Wallet integration and ecosystem support trigger reversal?
In the broader crypto space, Cardano’s recent integration into Blockchain.com’s DeFi Wallet could support the price outlook. Notably, the move makes ADA accessible to the 37 million users on the exchange, who can easily trade the coin without needing to transfer it to a separate wallet.
For Cardano to remain on the $1 path, the trading volume, currently down by a massive 48.02% at $1.72 billion, needs to enter the green zone. Ecosystem’s retail and institutional investors need to push up volume for a possible price reversal.
Cardano has demonstrated impressive performance over the last seven days, with a 13.35% price gain. If it receives ecosystem support, it might retrace its way upward.
Vladislav Sopov
U.Today Editorial Team