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Cardano (ADA) bulls have been stunned by developments on the cryptocurrency market. Within a 60-minute timespan, a price dip triggered a massive liquidation imbalance, with figures soaring by 3,598%. The data suggests ADA is on a price reversal streak as of press time.
Cardano liquidation spike in spotlight
According to CoinGlass data, long position traders who were betting on continued upward movement saw their positions wiped out.
These traders suffered a liquidation of $132,030 within the last hour. Market data suggests that Cardano failed to find stability after a brief breakout to $0.80 as a result of weakening momentum.
The asset fell from an intraday peak of $0.8035 to a low of $0.7678, as bulls could not support the rally. As of press time, Cardano is exchanging for $0.7905, reflecting a 0.2% increase in the last 24 hours. This highlights the continued volatility in price movements.
Investors are struggling to keep the asset’s trading volume in the green zone. It is currently up by 1.34% at $1.21 billion.
Cardano’s performance reflects the broader crypto market fluctuations as participants anticipate the U.S. Consumer Price Index release. Some analysts have opined that the Federal Reserve could delay a rate cut if the CPI hits above 2.8%.
Meanwhile, short position traders also recorded losses, which look negligible in comparison to bulls. A total of $3,570 were wiped out within the same one-hour period.
Can golden cross pattern push $1 ADA recovery?
Despite this volatility and liquidation, holders are still anticipating a run to $1.
Cardano’s technical indicator has flashed a golden cross pattern, the first in August, fueling hopes of a bullish setup ahead. Investors have not seen ADA trade above $1 since the first week of March, when news of a strategic crypto reserve supported its breakout.
With new users expected to embrace Cardano as a result of the glacier drop, perhaps the asset can recover from its volatility.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team