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The crypto market has experienced liquidations that amounted to $422.9 million from 136,253 traders over the past 24 hours. Cardano (ADA) is among the top cryptocurrencies that have seen huge liquidations. However, there is a major liquidation imbalance between long and short ADA traders.
Cardano shorts takes back seat
Recent data from CoinGlass revealed that Cardano saw total liquidations reaching $7,169,300 within the past 24 hours. While these liquidations have raised concerns about potential selling pressure, what is more alarming is the imbalance between long and short positions.
Notably, liquidations from long ADA holders came in at $6,560,000, as against only $609,300 from shorts. This created a $5,950,700 million gap, marking a 977% liquidation imbalance between ADA long and short traders.
The liquidation comes amid an ongoing ADA price rally. As of press time, the ADA price was trading at $0.78, up 1.4% over the previous day. Market activity for the coin also surged, as indicated by trading volume. This metric has increased by more than 36% to $1.2 billion.
How soon can ADA revisit $1?
ADA has attempted to hit the $1 mark multiple times earlier this month but remained stuck at the $0.80 level. On July 21, Cardano reached $0.935 but then lost steam. By July 28, ADA traded at a lower high of $0.856 before retreating once more.
Analysts attributed the coin’s failure to reach $1 to intense profit-taking. Traders locked in profits after a consistent rally in July, slowing upward momentum.
However, bulls are back, with ADA sustaining above the daily SMA 50 and 200 at $0.674 and $0.739. A successful breakout from $0.86 might see ADA rally toward the $0.90 and $0.95 range, before possibly revisiting $1.
Recent activities from ADA whales also add to the present dynamics. As U.Today reported, whales recently moved 271,092,516 ADA from the Coinbase crypto exchange to unknown wallets. This move suggests confidence from the whales as they hope for a big price shift in ADA.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team