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Cardano (ADA) Liquidation Data Shows Bullish Interest Is Waning, Here's How

Mon, 03/27/2023 - 11:36
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Godfrey Benjamin
Cardano liquidation has shown that more traders are losing faith in the potential of ADA to soar
Cardano (ADA) Liquidation Data Shows Bullish Interest Is Waning, Here's How
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Cardano (ADA) is currently being overshadowed today as its price has slipped by more than 1.77% over the past 24 hours to $0.3514. The Cardano price can be said to be consolidating as the daily loss is currently being eroded by 2.34% growth in the week-to-date (WTD) period.

While Cardano remains a top asset, data from CoinGlass has shown that there is reduced interest in ADA with respect to the number of traders taking a long position on the token. Per liquidation data, Cardano suffered an approximately 716.08K ADA token liquidation worth as much as $253,000 at the time of writing.

The liquidation data was for a 12-hour time period, and when further expanded, it will be observed that Cardano has even fewer long positions open when compared to other altcoins profiled.

While it can be generally agreed that liquidation is not necessarily good news for traders, it can gauge how optimistic traders are that the price of ADA will keep appreciating in the mid- to long term.

Cardano Announces New Release for Layer 2 Scaling Solution Hydra: Details

Cushion Cardano's growth

Cardano is a strategically growing Layer 1 proof-of-stake (PoS) blockchain network with a number of developmental efforts being put into growing the protocol. Among the several initiatives is the Hydra scaling tool being worked on at this time, which is billed to help increase the throughput of transactions on the blockchain.

ADA is primed to benefit from the targeted protocol upgrades in the near future as the increasing innovations making their way onto the network are bound to increase the demand for the digital currency, which will in turn increase its value over time.

Cardano has been experiencing significant whale actions in recent times that show that despite the limitation in growth prospects, the transactional outlook is robust and might contribute to its impending price growth.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.